New Jersey to Share in $51.5 Million Nationwide
Settlement Agreement with Bridgestone/Firestone, Inc.

NEWARK ­ New Jersey, along with 52 other jurisdictions, will share in a $51.5 million settlement with Bridgestone/Firestone, Inc. to resolve consumer protection claims regarding allegedly defective tires and misrepresentations the company made during the tire replacement process and the promotion of those tires, Attorney General John J. Farmer, Jr. and New Jersey Division of Consumer Affairs Director Mark Herr announced today.

Bridgestone/Firestone has denied any wrongdoing under the terms of the multi-million dollar settlement agreement.

The settlement provides that $26.5 million out of the $51.5 million will be equally divided among all 50 states, District of Columbia, Puerto Rico and the Virgin Islands. Up to $10 million is devoted to restitution for consumers nationwide. This amount is in addition to the approximately $450 million already spent by Bridgestone/Firestone in the 53 jurisdictions for the replacement or return of tires or payment of refund to consumers.

Approximately $10 million will go to pay for the costs of the investigation in the various states. Another $5 million will be devoted to a national public service announcement campaign conducted by the Attorneys General.

"I am pleased that Bridgestone/Firestone has agreed to resolve this matter,"Attorney General Farmer said. "The willingness of the company to settle the matter will hopefully provide greater consumer protections."

"This settlement agreement will end a practice of Bridgestone/Firestone making misrepresentations to consumers,"Herr said." Our job is to protect consumers. Misleading or deceptive practices will not be tolerated."

The joint settlement is the result of numerous consumer protection claims involving alleged misrepresentations regarding particular tires that had high rates of separations, and alleged misrepresentations made during the company's tire replacement process.

In New Jersey, Bridgestone/Firestone spent approximately $15,380,911 to refund money to consumers for replacement of the recalled tires and to implement a bounty program. A total of 166,179 tires were replaced for consumers in New Jersey. The bounty program was instituted by Bridgestone/Firestone on September 21, 2000, offering payments to consumers for used tires subject to the August 9, 2000 recall.

The State will receive $30,000 as reimbursement for attorneys' fees, investigation fees and other related costs. New Jersey will also receive $500,000 to fund future consumer protection initiatives.

The tires involved included those from three separate tire replacement programs.

The first recall in August 9, 2000 included all P235/75 R15 Firestone Radial ATX, all P235/75 R15 Firestone Radial ATXII, and the P235/75 Firestone Wilderness AT tires manufactured at the company's Decatur, Illinois plant. Other tires included were involved in the "Customer Satisfaction Program" announced on September 12, 2000. Also included were the following tires announced during a recall on October 4, 2001: all Firestone Wilderness AT tires in the P235/75 R15 and P255/70 R16 sizes which were produced before May 1998 and used as original equipment on Ford Explorers and Mercury Mountaineers for model years 1995 through 1998.

The settlement also requires Bridgestone/Firestone to reimburse or refer to arbitration certain consumer complaints forwarded to the Attorneys General's Offices and/or relevant state agencies. Any consumer denied a refund under the "Voluntary Safety Tire Recall Reimbursement Program" or "Customer Satisfaction Program" will receive a letter which will explain that the consumer has an option to seek a reconsideration of their refund denial.

If a consumer requests, Bridgestone/Firestone will review the refund denial. If Bridgestone/Firestone then denies the claim, the consumer has the option to submit the claim to an independent arbitrator, at no cost.

The settlement also includes permanent injunction provisions which state that Bridgestone/Firestone:

Also under the terms of the agreement, Bridgestone/Firestone will provide detailed safety consumer information to consumers at the time of delivering tires, including information about proper tire maintenance, load capacity, air pressure, proper tire repair and warranty information.

The agreement does not release Bridgestone/Firestone from any criminal, environmental or tax liability or any private right of action by consumers, nor does it release the company from personal injury or property damage claims by the State.

Deputy Attorney General of the Division of Law Lorraine K. Rak handled this case for the state.

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