By LINDA A. JOHNSON, AP Business Writer
TRENTON, N.J. (AP) - A N.J. state judge has approved a national class-action settlement under which an Ohio tire manufacturer will offer extended warranties on millions of steel-belted radial tires.
The settlement, approved Friday by New Jersey Superior Court Judge Marina Corodemus in New Brunswick, covers about 175 million steel-belted radials manufactured by Cooper Tire & Rubber Co. between Jan. 1, 1985, and Jan. 6, 2002.
Attorneys had brought class action lawsuits in 33 states under various consumer protection statutes, and they were consolidated in New Jersey.
The lawsuits alleged that Findlay, Ohio-based Cooper Tire did not disclose problems related to adhesion between layers of the tires.
There were no claims of personal injury or property damage in the case, and no request for a recall.
Under the settlement, Cooper must provide free replacements for five years for any tires damaged by tread separation related to the manufacturing process, rather than just offering replacements on a prorated basis according to mileage, as its standard warranty does.
Cooper attorneys wrote in a letter Friday evening that such tread separation involves less than one-fourth of 1 percent of its tires. Cooper makes roughly 40 million tires each year under the Cooper brand and private brands sold by Sears, Pep Boys and other retailers.
The settlement also requires Cooper to improve the inspection process at its manufacturing facilities, under the eye of court-approved compliance monitors. Cooper also must help fund consumer education programs on higher maintenance and safety.
The settlement was valued at between $1 billion and $3 billion by plaintiffs' attorneys John E. Keefe Jr. of the New Orleans law firm of Allan Kanner & Associates. Cooper previously said it would take a $55 million pretax charge to cover the settlement costs.
"This settlement proves we are committed to customer service and satisfaction," Tom Dattilo, Cooper's chairman, president and chief executive officer, said in a prepared statement. "We stand by our tires."