Michelin settles with Sudduth Tire

GREENVILLE, S.C. (March 18, 2015) — Michelin North America Inc. has settled its lawsuit against a Southern California commercial tire dealer, according to documents filed with the U.S. District Court for the District of South Carolina, Greenville Division.

Michelin filed a 10-count complaint with the Greenville court Jan. 6 against Sudduth Tire Co. Inc. of Long Beach, Calif.

In the complaint, Michelin accused Sudduth Tire of defrauding the tire maker of more than $3.2 million.

Sudduth Tire was a participant in Michelin's Government Sales Program (GSP), in which the tire maker gives tire dealers credits toward discounted or free tires as an incentive to sell tires to government entities.

According to the complaint, Sudduth Tire filed fraudulent claims for more than 71,000 tires supposedly sold to government agencies.

In a one-page filing dated March 16, Michelin said it had settled with Sudduth Tire and that both parties would file appropriate documents with the court.

No details of the settlement were revealed, including the amount of any possible monetary damages.

The same day, Senior U.S. District Judge Henry M. Herlong Jr. dismissed the case. If the settlement is not consummated within 30 days, Judge Herlong wrote, either party may ask the court to either enforce the settlement or reopen the case.

Except to acknowledge the settlement, Michelin declined further comment.

Tire Business contacted Sudduth Tire for comment and was told that Jeanne Sudduth — the company president named in the lawsuit — had retired, and David Obenauer, a company vice president named in the suit, was no longer with the dealership. The Sudduth spokesperson said the company had no comment on the settlement.