Bandag to spend up to $19 million on lawsuits

MUSCATINE, Iowa (April 9)—Bandag Inc. expects to spend as much as $19 million in legal costs dealing with lawsuits involving Michelin Retread Technologies Inc. before the suits ever go to trial, according to Bandag´s 10-K filing with the Securities and Exchange Commission. Bandag spent $6.9 million last year, and estimated legal expenses this year related to the suits at $10 million to $12 million. Bandag originally filed suit in September 1999 against MRTI, alleging the Michelin North America Inc. subsidiary was violating various antitrust statutes. MRTI countersued and recently added Bridgestone/Firestone Inc. as a co-defendant, claiming Bandag and Bridgestone/Firestone conspired to keep MRTI from competing fairly for business among commercial tire dealers and retreaders. The first suit is scheduled to go to trial in January 2002.