GREENVILLE, S.C. (Sept. 24, 1999) — Michelin North America, a division of French tire maker Michelin, said it would “take an aggressive stance” against the lawsuit filed against it by tire retread company Bandag Inc., and called the suit baseless.

“The lawsuit Bandag has initiated against Michelin is without merit and we plan to take an aggressive stance against all claims,” said John Rice, chief operating officer of Michelin Americas Truck Tires, in a statement.

Last week, Muscatine, Iowa-based Bandag said it is suing two subsidiaries of Michelin, Michelin North America Inc. and Michelin Retread Technologies. Bandag said Michelin misappropriated trade secrets, spread false rumors about Bandag, and engaged in predatory pricing — illegal business tactics designed to drive Bandag out of business.

The suit charges that Michelin induced seven major dealers to breach or not renew their agreements with Bandag and convert to Michelin and that key Bandag franchisees have been pressured to discontinue their relationships with Bandag. In some cases, the suit alleges, inducements worth millions of dollars were offered to Bandag franchisees.

“It’s clear Bandag is concerned about competition from MRTI in the market,” Rice said. “Dealers deserve a chance to choose what processes and products they offer the end user.”