Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
September 30, 2002 02:00 AM

Court OKs Cooper class action settlement

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

    A New Jersey judge has approved a class action settlement bringing an estimated $1 billion to $3 billion in value to customers of Cooper Tire & Rubber Co., though Cooper itself estimates its actual cost at $55 million.

    Cooper admitted no wrongdoing in the settlement, which received preliminary court approval last October, and stressed there were never any personal injury or property damage claims or demands for product recalls associated with the class action.

    Also, consumer group Public Citizen, which filed a formal objection to the settlement, dropped its suit after both Cooper and the plaintiffs' attorneys who negotiated the settlement agreed to make some minor changes to ensure all potential claimants received their benefits.

    Judge Marina Corodemus of the New Jersey Superior Court gave final approval Sept. 13 to the agreement, which settled 33 class action lawsuits brought against Cooper in 2000 and 2001. In those suits, attorneys claimed that faulty manufacturing methods caused adhesion problems resulting in bubbles or blisters in the tires' inner linings, a charge Cooper denied.

    The agreement, as approved, covers approximately 40 million consumers who purchased approximately 170 million Cooper-built, steel-belted radial tires between Jan. 1, 1985, and Jan. 6, 2002.

    Through the settlement, Cooper offers these consumers a five-year program which guarantees them free replacement tires-along with mounting, balancing and disposal costs-for every Cooper steel-belted radial that suffers a tread separation for whatever reason.

    If consumers prefer not to take the replacement tire, the agreement offers a simplified alternative dispute resolution through which they can receive cash reimbursements instead.

    In addition, Cooper agreed to implement an enhanced inspection process in its manufacturing facilities to ensure that potentially under-performing tires never leave the factory. The Findlay, Ohio-based tire maker also will fund a consumer education program on tire maintenance and safety in collaboration with the National Highway Traffic Safety Administration and the National Safety Council.

    ``This is a great deal for the class-action members-no ifs, ands or buts,'' said Allan Kanner, a New Orleans attorney who led the consolidated class action and negotiated the settlement.

    Mr. Kanner, who called the agreement a ``gold standard'' for future class action settlements, noted the deal also includes an education program for dealers who carry Cooper tires, ``to make sure everybody gets benefits.''

    Cooper has estimated of its actual cost of $55 million, approximately $30 million will go to the attorneys who negotiated the agreement.

    The figure of $1 billion to $3 billion came from Mr. Kanner; a Cooper spokeswoman said that this is the estimated cost if all class members choose to claim benefits.

    The failure rate of the Cooper tires involvement in the settlement is ``dramatically'' less than one-quarter of 1 percent, Cooper claims.

    ``This settlement proves we are committed to customer service and satisfaction,'' said Thomas A. Dattilo, Cooper chairman, in a news release. ``We stand by our tires, and this settlement reflects our confidence in the safety and durability of our product.'' The financial provisions Cooper made in the third quarter of 2001 should be sufficient to pay all the claims related to the settlement, Mr. Dattilo added.

    Saul Ludwig, a tire industry analyst with McDonald & Co. in Cleveland, agreed with Mr. Dattilo that the settlement will have minimal financial impact on Cooper. ``Since the final agreement is no different from what was provided for last year, the financial provisions Cooper made would seem to be adequate,'' Mr. Ludwig said.

    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].

    Most Popular
    1
    Tire Discounters grows again, adds Skip Cottrell's
    2
    Icahn-owned Auto Plus files for Chapter 11 protection
    3
    Truck sector leads U.S. tire market; consumer down
    4
    K&M welcomes dealers to annual conference in Vegas
    5
    Black's Tire Service holds leadership conference
    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
    • Instagram
    • 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.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • 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 © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION