OTHER NEWS - Jan. 6, 1992

Uniroyal Accused of Fraud: A union representing workers at a tire plant set to close later this year accused Uniroyal Goodrich Tire Co. of fraud in a multimillion-dollar lawsuit filed in Wisconsin. The United Rubber Workers local for the Eau Claire, Wis., plant filed the suit in U.S. District Court in Madison. It seeks $145 million in damages plus triple the amount of actual damages allowed under a federal racketeering law. The suit accuses the company of participating in a scheme to use the assets of Uniroyal Inc. and Uniroyal Goodrich Tire Co. “to enrich themselves at the expense” of the union. It also alleges violations of anti-fraud provisions of federal securities laws. The suit says a plan to defraud workers began with a 1985 leveraged buyout of Uniroyal and continued until its 1990 sale to Michelin Group of France. Among those named in the lawsuit are Uniroyal, Michelin Group and Michelin North America.