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States monitoring Firestone recall

By Raju Chebium
CNN.com Correspondent

WASHINGTON (CNN) -- Already faced with Congressional hearings, a Justice Department probe and scores of private lawsuits over faulty tires and the recall process, Bridgestone/Firestone Inc. and Ford Motor Co. are now under added legal scrutiny -- from state attorneys general.

State prosecutors in South Carolina, Florida and Georgia are reviewing how the two companies are handling the recall of 6.5 million tires announced August 9, and related matters. Other state prosecutors say they are watching developments on the recall effort.

Officials are quick to note that they have no immediate plans for a coordinated legal challenge against Firestone and Ford, like the one that state prosecutors mounted against the tobacco industry or Microsoft Corp.

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"I am not aware of any current plans for any kind of coordinated action," said Todd Boyer, spokesman for Ohio Attorney General Betty Montgomery, chairman of the consumer protection committee for the National Association of Attorneys General.

Only South Carolina has sued Firestone. Florida has issued subpoenas and Georgia is preparing questions to submit to the two companies.

Boyer said Wednesday that Montgomery held two conference calls with 40 attorneys general in August to determine how the recall was proceeding in their states and what concerns they had.

The "consensus from most of the states was that Ford and Firestone, by and large, were being very responsive ... and very cooperative," he said. "We are continuing to keep a close watch on the situation and monitoring it."

Christine Karbowiak, spokeswoman for Bridgestone/Firestone, Inc. said in a prepared statement Thursday that the company is working with government officials.

"While we may have made mistakes in the past, we will do everything possible to provide answers to this issue, to protect consumer safety and to restore the public's and the government's confidence in the Firestone and our company," the statement said.

Ford did not immediately return a telephone message Thursday.

One legal expert said states could take aim at Ford and Firestone under individual anti-consumer fraud statutes. The companies could face criminal and civil penalties for any violations, said Arthur Bryant, executive director of Trial Lawyers for Public Justice.

For civil remedies, states would have to prove that they spent money to correct the problems caused by faulty tires on Ford vehicles, he said. For criminal penalties, prosecutors would have to prove that the companies intentionally misled consumers into thinking the tires were safe, he added.

State action since the August 9 recalls order

South Carolina Attorney General Charlie Condon sued Firestone on August 14 to force the tire maker to quickly institute a recall in the state, Condon spokesman Robb McBurney said.

McBurney said South Carolina sued after Firestone assigned the state lower priority than Florida, Arizona, Texas and California in completing recalls. The company has said it will focus on those states because they had more Firestone-tire-related traffic accidents.

The lawsuit, filed in state court, seeks $5,000 per violation under the state's Unfair Trade Practices Act. McBurney said the state is gathering information through its own investigations and from Firestone to determine how many violations there were.

Florida issued subpoenas to Firestone and Ford on August 21, seeking information about the manufacture and design of the tires and the contractual ties between the two companies, said Les Gerringer, an assistant deputy attorney general. He said the companies have until September 21 to respond.

Citing federal figures from 1996 to 1999, Gerringer said Florida has had eight fatalities and 141 injuries due to accidents involving Ford Explorer sport utility vehicles and Ford F-150 trucks.

Georgia is compiling questions about the safety of the tires and the possibility of expanding the recall, said Bill Cloud, spokesman for the Governor's Office of Consumer Affairs.

"We're talking safety of citizens here," Cloud said. "We've got to get answers here. We can't sit here and let vehicles roll over."

Cloud said there are no known fatalities due to the faulty tires, but he cited federal figures showing that 29 Georgians were injured because the Firestone tires on their vehicles separated.

Cloud and Gerringer stressed that their states have not decided whether to sue.

Ford, Firestone face plethora of legal, political woes

The two companies are facing political and legal pressure from many fronts as faulty Firestone tires found mostly on Ford Explorers have been linked to at least 88 deaths in the United States alone.

U.S. Attorney General Janet Reno said Thursday the Justice Department will review the recall to determine whether criminal charges are warranted.

Congress began hearings Wednesday; the top executives of Ford and Firestone testified. More hearings and investigations are expected.

Dozens of private lawsuits have been filed across the country, some seeking class-action status to cover hundreds or thousands of Ford customers whose vehicles came equipped with the models of Firestone tires being recalled.

Additionally, Venezuela is considering filing criminal charges in the matter, saying dozens of Ford motorists in that South American country may have been killed because of faulty Firestone tires.

Tire class-action lawsuit moves to federal court
August 25, 2000
Florida attorneys seek class-action status for Firestone lawsuit
August 24, 2000
Florida drivers may drop class action lawsuit
August 18, 2000
Higher death toll from accidents involving Firestone tires, NHTSA says
August 15, 2000
Florida drivers want Firestone to replace tires immediately
August 14, 2000
Firestone recall, plant come under fire
August 13, 2000

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