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Michelin, Honda, drivers settle over run-flat tires

6/30/2009 - GreenvilleOnline.com
Michelin, Honda, drivers settle over run-flat tires

By Jenny Munro • Business writer • June 30, 2009

A class action lawsuit against Greenville-based Michelin North America and American Honda Motor Co. for excessive wear on PAX System tires received final approval of the judgment ordering the companies to compensate plaintiffs.

“The settlement was fair, adequate, reasonable and provides meaningful relief for class members,” said Lynne Slovick, Michelin spokeswoman.
Roger W. Titus, U.S. District Court for the district of Maryland judge, approved an aggregate award of $83,000, which will be distributed to class members in sums of $5,000, $2,500 or $2,000 as compensation for replaced tires.
The settlement also allows class members to receive a rebate of $110 for the purchase of a Honda-approved PAX spare tire kits or spare tire or a $300 rebate for the purchase of a new Honda Odyssey or Acura RL. In addition, Michelin offered a three-year/36,000-mile extended warranty on the tires.
Also, the court awarded attorneys' fees and reimbursement of expenses of $3 million.
Honda equipped some of its Odyssey Touring edition model and its Acura RL models with a “technology package,” which included Michelin PAX tire and wheel assembly system in the United States, Puerto Rico, the American Virgin Islands and Guam. Consumers claimed the companies failed to disclose that the run-flat tire systems lasted half as long as radial tires and that the tires are expensive to repair and replace.
Honda provided notice of the settlement to more than 94,000 class members, who now own or lease vehicles with the tire systems or previously owned or leased vehicles using the tires.

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