Recall Scare Hits Bridgestone Shares

Bridgestone shares dropped by 5.4 per cent following the filing of a lawsuit by an American lawyer, calling for the recall of 27.5 million Bridgestone Steeltex tyres.

Potential costs of the action are estimated at $2.75 bn. The fall in share price and possible damage to brand image appear to be unwarranted, as the National Highway Traffic Safety Administration has already investigated the tyre and officially announced that it found no defects on Steeltex tyres.