After three years of legal wrangling, Bandag Inc., Michelin North America Inc. and its subsidiary Michelin Retread Technologies Inc. have settled their mutual lawsuits in the retreading arena.
As a result, all parties have been dismissed from the litigation, Michelin and Bandag said, and the parties have agreed to dismiss all financial claims against each other.
The agreement brings to a close the trial in the U.S. District Court in Des Moines that began May 13. Neither Bandag nor Michelin would comment on the settlement, citing confidentiality agreements.
The case began in 1999 when Bandag filed a lawsuit against Michelin alleging that it tried to eliminate Bandag as a competitor in the retreading market. Michelin countersued, claiming Bandag holds a monopoly on the retreading industry. Greenville, S.C.-based Michelin also named Bridgestone/Firestone in the suit, alleging BFS and Bandag conspired to prevent retreaders from adopting Michelin's retreading system by offering financial incentives.
The allegations against Bridgestone/Firestone also have been dismissed from the case, according to Christine Karbowiak, BFS vice president of public affairs. She said BFS hasn't seen the settlement agreement and couldn't provide any details.
Bandag had been seeking at least $8.75 million in damages against Michelin plus punitive damages, according to the Muscatine, Iowa-based retread supplier's 10-K report.
Michelin, meanwhile, sought $146.1 million in damages against Bandag and Bridgestone/Firestone plus treble damages, the report stated.