Goodyear Rides Off with $159 Million in Settlement

The Goodyear Tire & Rubber Company said Monday that it will receive approximately $159 million from certain insurance companies as settlement for a lawsuit previously filed by the tiremaker. The $159 million will be paid to the company in installments over the next 15 months.

While the specific terms of the Dec. 28, 2004 settlement are reportedly confidential, it provides for the payments to Goodyear in exchange for the company’s releasing the insurers from certain past, present and future environmental claims. Goodyear filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission on Monday regarding this settlement.

The lawsuit, which Goodyear filed in 1993, sought to have the insurers
honor their policies to pay the company’s liability and defense costs in
regard to certain environmental claims.