GREENSBURG, Pa. (Oct. 15, 2009) — Specialty Tires of America Inc. (STA) is appealing the Sept. 15 dismissal of its antitrust lawsuit against Hoosier Racing Tire Corp. on the grounds that the court's opinion is “contrary to the intent of antitrust laws” and will lead to less competition in the market for racing tires and other racing equipment.
“We simply cannot let this ruling stand unchallenged,” said STA President and CEO Donald Mateer III. “If we do so, the end result will be that a few large sanctioning companies and parts suppliers, like Hoosier, will dictate to promoters, car owners and racers not only the rules, but also how much extra race participants have to pay for ordinary parts.”
STA filed its appeal Oct. 9 with the Federal Third Circuit Court of Appeals in Philadelphia. The original suit was filed in October 2007, with World Racing Group Inc., a racing sanctioning body, a co-defendant.
“Already in some parts of the country promoters preferring to have more affordable races for their competitors cannot do so because of the overwhelming influence of a dominant sanctioning company,” Mr. Mateer said in a prepared statement. “This ruling only aggravates that inequity.
“Without a truly competitive market benefiting promoters, drivers and car owners,” he added, “racer participation and car counts will suffer and the interests of a few dominant companies will determine the face of short-track racing in America for everyone else.
“We believe that true competition fosters innovation, choice, reduced prices and better serves the many participants in the short-track racing industry rather than a select few.”
Mr. Mateer alleges Hoosier maintains a near-monopoly position by using long-term exclusive agreements, collusive behavior with World Racing Group and other sanctioning companies, and other means.
STA competes with Plymouth, Ind.-based Hoosier with its American Racer brand racing tires, which it markets through its Race Tires America division.