Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Aligning with ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
January 19, 2015 01:00 AM

Michelin sues Sudduth Tire for alleged fraud

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

    GREENVILLE, S.C.—Michelin North America Inc. is suing a Southern California commercial tire dealer for allegedly defrauding the tire maker of more than $3.2 million.

    Long Beach, Calif.-based Sudduth Tire Co. Inc. submitted fraudulent claims to Michelin for sales to government agencies of more than 71,000 tires, in order to gain credits from Michelin

    for free or discounted tires, according to the 10-count complaint filed Jan. 6 with the U.S. District Court for the District of South Carolina, Greenville Division.

    The suit names as defendants Sudduth Tire, company President Jeanne Sudduth and her son, company Vice President David Obenauer.

    According to the lawsuit, Sudduth Tire has been a Michelin dealer since 1993. The dealership is a participant in Michelin's Government Sales Program (GSP), in which Michelin gives dealers credits as an incentive to sell tires to government entities. Participating dealers submit Government Sales Support (GS/GU) Claims to Michelin to verify government sales, and in return the tire maker gives them credits to be used to purchase tires at a discount, or even get them free.

    In April 2014, the lawsuit said, Greenville-based Michelin began to notice discrepancies between the number of tires Sudduth Tire purchased and its GS/GU claims.

    After conducting an audit, the tire maker found that Sudduth Tire had made unverified GS/GU claims for more than 71,000 tires, according to the complaint. Michelin said it had given Sudduth Tire $3,246,000 in credits for those claims.

    Michelin demanded repayment of the credits in July 2014. Mr. Obenauer replied in August 2014, saying the company could not comply with Michelin's request for repayment, according to the complaint.

    Mr. Obenauer wrote to Michelin again in September 2014, according to the lawsuit, saying his attorneys were investigating a case of embezzlement at Sudduth Tire, which may have involved the GS/GU credit applications.

    The Michelin complaint accuses Mr. Obenauer and Ms. Sudduth of more than 400 acts of wire fraud between January 2012 and May 2014. It also accuses them of breach of contract with Michelin, as well as civil violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    The tire maker seeks repayment of the credits, treble damages, punitive damages, pre- or post-judgment interest, attorneys' fees, court costs and other damages the court deems proper.

    Related Articles
    Michelin '14 sales, earnings down
    Michelin settles with Sudduth Tire
    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
    Updated: ATD to buy Monro tire-distribution unit for $105M
    2
    Bruno to assume Pirelli CEO role in 2023
    3
    Michelin worker dies at Nova Scotia tire plant
    4
    Monro fiscal '22 earnings, sales up double-digits
    5
    Apollo fiscal '22 sales up 20%, earnings down
    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.

    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 © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Aligning with ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION