Goodyear Tire & Rubber Company ( NASDAQ: GT ) is on watch following a report that the Justice Department is investigating the tire giant for how the company handled a recalled tire that has been linked in the past to eight deaths and dozens of injuries.
Federal prosecutors have sought company records, as well as record of depositions from a civil litigation case filed against Goodyear years ago, according to The Wall Street Journal .
The current investigation is said to add to the government's probe of a Goodyear tire that was made between 1996 and 2003 and sold under the G159 model name for use with motor homes. The National Highway Traffic Safety Administration has stated the G159 tires were defective when exposed to certain conditions, while the company has maintained that the tire had no safety defect.
Shares of Goodyear Tire & Rubber ( GT ) were down 0.97% premarket on Wednesday amid broad declines in the automobile sector.
Following the closing bell on Wednesday, Tesla is due to spill Q4 earnings in a closely watched report for the auto sector as a whole. Read the Tesla earnings preview.
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Goodyear Tire & Rubber faces DOJ probe over handling of tire recall