Firestone Settles With States
November 9, 2001
Another chapter in one of the worst defective tire cases in history began today when Bridgestone/Firestone Inc. announced it will pay up to $51.5 million to 50 states and three territories to settle a pending lawsuit. The settlement includes payment of $500,000 to each state, the District of Columbia, Puerto Rico and Guam, as well as $10 million in legal fees and $5 million for consumer education programs. Firestone has promised another $10 million to reimburse consumers.
Firestone has also agreed to stop production of certain tires and alter its manufacturing procedures. The settlement is another crushing blow to the tire company, which has spent an estimated $1 billion since the tire recalls began last year. Also affected by the recalls is Ford Motor Company, which has spent nearly $3 billion to replace Firestone tires on Ford vehicles, mostly Ford Explorers. 27 million tires have been recalled in all.
The settlement is a major victory for a coalition of state attorneys general who began investigating the company in September of 2000 after the first recalls began. "With what information we have, both Ford and Firestone knew they had a problem and yet continued to sell a product," said Florida Attorney General Bob Butterworth.
Federal regulators estimate that 271 people have died and more than 800 have been injured due to accidents linked to Firestone tires. In Florida alone, over 44 deaths have been reported and more than 230 people have been seriously injured in SUVs fitted with Firestone tires. Since the recalls began, Firestone has settled more than 400 private lawsuits nationwide.
-- Article Courtesy of InjuryBoard.com
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