Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • COVID takes dealers for roller-coaster ride
      A year later, pandemic's full tire industry impact unclear
      Tire Cologne canceled; rescheduled until 2022
      New round of Paycheck Protection Program funding opens
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Sumitomo adds treadwear-detection to 'Sensor Core' toolkit
    • Exclusive PPP window closing March 9, program continues rest of the month
      F1 extends Pirelli's supply contract through 2024
      Titan eyes solid recovery in 2021 as ag sector rebounds
      4 Wheel Parts celebrates 60th anniversary with deals, promotions
    • Fisher: Commercial tire industries evolve during year of pandemic
      Goodyear joins connected mobility pilot program in Ohio
      Michelin launches high-scrub, weight-sensitive X One Multi T trailer tire
      TRAC Intermodal redirects retread biz 100% in-house
    • Exclusive PPP window closing March 9, program continues rest of the month
      USTMA joins coalition supporting passage of Equality Act
      McMahon's Best-One increases its minimum wage to $15
      Oshkosh unit gets contract for new USPS local delivery vehicle
    • F1 extends Pirelli's supply contract through 2024
      Maxam adding multipurpose radial, solid OTR tires
      Goodyear names Patterson to lead Cooper integration efforts
      DTM switches horses mid-stream; awards race tire contract to Michelin
    • F1 extends Pirelli's supply contract through 2024
      DTM switches horses mid-stream; awards race tire contract to Michelin
      Bridgestone World Solar Challenge canceled due to pandemic restrictions
      Pirelli, Goodyear ink sedan racing series contracts in Canada, Europe
    • Snap-on debuts Triton-D10 diagnostic tool with scan, lab scope capabilities
      Maxam adding multipurpose radial, solid OTR tires
      Michelin launches high-scrub, weight-sensitive X One Multi T trailer tire
      Giti rolling out range of GT Radial-brand urban/regional truck tires
    • Exclusive PPP window closing March 9, program continues rest of the month
      COVID takes dealers for roller-coaster ride
      Investment groups to acquire Mavis Tire network
      Vogue Tyre offers $75 rebate on set of 4 tires during March
    • Five tips for finding, retaining auto technicians
      Snap-on debuts Triton-D10 diagnostic tool with scan, lab scope capabilities
      Pennzoil offering carbon-neutral lubricants for passenger cars
      Washington dealership uses new-school solution for recruiting auto techs
    • TIA seeking nominations for Tire Industry Hall of Fame
      SEMA survey shows resilient auto aftermarket in 2020
      SEMA scholarships and loan forgiveness now available
      WTC hosting webinar Jan. 20 on load-capacity standards
    • SEMA survey shows resilient auto aftermarket in 2020
      Trade groups oppose minimum wage increase proposal
      New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
    • Goodyear joins connected mobility pilot program in Ohio
      Titan eyes solid recovery in 2021 as ag sector rebounds
      Michelin launches high-scrub, weight-sensitive X One Multi T trailer tire
      Goodyear names Patterson to lead Cooper integration efforts
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TMPS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
October 31, 2001 01:00 AM

Cooper to settle class actions (updated)

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    FINDLAY, Ohio (Oct. 31, 2001)—Cooper Tire & Rubber Co. and attorneys representing 32 class-action tread separation lawsuits against the company have reached a tentative agreement to settle the suits.

    The settlement is still subject to approval by the Superior Court of New Jersey where the suits were being heard. It “denies any wrongdoing or legal liability by Cooper” and will provide a free replacement to consumers who suffered a manufacturing-defect-related tread separation in any steel-belted radial passenger tire Cooper made in the past 16 years.

    Cooper said it will record a third-quarter pretax charge of $55 million, or an after-tax charge of $34 million, related to the settlement agreement. Approximately $30 million of this sum will go to the plaintiffs' attorneys, a company spokeswoman said.

    There were never any personal injury or property damage claims involved in the class actions, the spokeswoman said. This settlement has no bearing on other personal injury or property damage cases pending against the company.

    Although complete details on the agreement weren't available at press time, Cooper said the five-year program envisioned in the settlement would:

    · Offer Cooper customers a free replacement tire for every steel-belted radial tire Cooper made—including Cooper, Mastercraft, associate and private brands—between 1985 and 2001 that suffered a tread separation;

    · Modify final inspection procedures for Cooper tires just before they enter the warehouse; and

    · Create a massive consumer tire safety education program that, a Cooper spokeswoman said, will involve all Cooper tire dealers in the U.S.

    The settlement expands the normal tire warranty coverage, which usually replaces a tire on a pro-rated basis.

    The spokeswoman called the settlement plan, which could be finalized by the second quarter of 2002, an “extremely positive” development for the Findlay-based tire maker.

    “We've spent a great deal of money defending ourselves against these class-actions,” she said. “It's a good business decision to put this behind us.” The settlement will not include provisions for cash awards, according to the company.

    The settlement cost, equal to 47 cents per share, is in addition to $33.6 million in charges the company has booked so far this year to cover costs related to litigation and product liability, the spokeswoman said. Net cash outlays related to the settlement will total $5 million in 2001 and $19 million in 2002, with the remainder spread across the agreement's remaining three years.

    Cooper manufactured approximately 450 million steel radial passenger tires during the time span in question and estimates that 170 million are still on the road. Of that number, the company expects only a fraction of a percent may have suffered tread separations.

    The pending class-actions were filed by 53 plaintiffs' law firms, the spokeswoman said. These attorneys have accused Cooper of poor quality control and knowingly selling defective tires—charges the company vigorously denies.

    John Keefe, a Red Bank, N.J., attorney involved in negotiations with Cooper, called the proposed settlement a “very pro-consumer deal. It's the gold standard for responsible class actions and responsible defendants.” Cooper's extended tread separation warranty covers 170 million tires, he added.

    The inspection modifications Cooper proposes have nothing to do with the company's manufacturing processes, the spokeswoman said. “Our manufacturing process is one of the best in the industry,” she said. “If we have a chance to improve what's already great, we'll do it. This reconfirms our commitment to safety.”

    As for the consumer education program, Cooper plans to collaborate with a national safety organization to prepare new driver safety literature that will concentrate on what to do in the case of tire failure and how to tell when a tire may be in danger of failure.

    The company will disseminate this literature throughout its dealer network, along with the tire safety literature published by the Rubber Manufacturers Association (RMA) in its “Be Tire Smart—Play Your PART” campaign, the spokeswoman said. It also will post the information on its corporate Web site.

    “We are going to all our dealers to urge them to get involved with their local student driver programs,” the spokeswoman said.

    Tire Business Staff Reporter Bruce Davis contributed to this story.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award