$159 million settlement with insurance carriers benefits Goodyear
Goodyear Tire & Rubber Co. 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 Goodyear in installments over the next 15 months. In exchange, the company will release 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. Specific terms of the December 28, 2004, settlement are confidential, according to the company.
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.
Goodyear´s stock was selling for $14.90 a share at the close of the New York Stock Exchange yesterday. That compares to a 52-week high and low of $15.01 and $7.06, respectively.