Trek and LeMond Satisfied with out-of-court settlement

A 15 year long relationship comes to an end

Trek Bicycle Corporation and Greg LeMond ended a two-year lawsuit satisfied with an undisclosed out-of-court settlement announced on Monday, February 1 in a joint press release.

The decision to settle effectively ended more than a decade long relationship between the former business partners, according to Trek’s attorney Ralph A. Weber.

“Yes, both parties worked very hard to find common ground and both parties are pleased that we could reach a settlement,” Weber said. “Whenever the parties can find common ground both sides win. It does end the relationship between LeMond and Trek.”

Three-time Tour de France winner Greg LeMond and Trek Bicycle Corporation entered into a licensing contract agreement in 1995 that allowed Trek Bicycle Corp. to manufacture and sell the LeMond Bicycle brand. However, in March of 2008 lawsuits went back and forth between the two parties.

“There was a contractual relationship, a decline in sale and a dispute of the LeMond brand,” Weber said. “It has to do with the cause, by saying things that Trek did or didn’t say or do but, the lawsuit was about the business relationship.”

In 2008, Trek announced that it would stop manufacturing the LeMond Bicycle brand whereby LeMond issued it a breach-of-contract claim. He argued that the bike manufacture did not put forth its best effort to market the LeMond Bicycle brand. Furthermore, that its marquee athlete seven-time Tour de France winner Lance Armstrong had used his powerful position to persuade Trek in that direction.

Trek argued that LeMond’s well-known and public allegations that Lance Armstrong used performance-enhancing substances caused a decline in the LeMond Bicycle brand sales, among other reasons. The battle became highly public.

“The lawsuit began in March of 2008 and a trial was set begin on March 1 this year,” Weber said. “The court asked the parties to work with a mediator to see if they could reach a resolution and they were both please that one could be reached.”

A trial was scheduled to take place in the US District Court in St. Paul, Minnesota in March however, Judge Richard H. Kyle ordered the two parties to work on an out-of-court settlement via mediation. Weber declined to disclose the details of the settlement.

LeMond’s lawyer Jamie DiBoise confirmed reports onCyclingNews that Trek will make two payments of $100,000 to 1in4.org, a non-profit organisation which has the goal of helping those who have been sexually abused in childhood.

LeMond joined the founding board of 1in6.org charity in 2007, the same year that he announced being sexually abused as a child by a family friend. LeMond won the Tour de France on three occasions in 1986, 1989 and 1990.

A joint press release was issued on Monday announcing that both parties agreed to an out-of-court settlement and had closed all remaining issues. President of Trek Bicycle Corporation John Burke stated,

“Greg has a hard-won place in the Pantheon of bicycle racing, and we are proud of what we were able to accomplish together,” said Trek’s President John Burke.  “Trek respects Greg’s efforts and commitment to the charitable foundation, 1in6.org, and Trek is pleased to lend its support to that very worthwhile endeavor.”

In the press release, LeMond went on to say that, “I am pleased to resolve the issues between Trek and myself and am happy to be able to move forward with the things important in my life. I appreciate Trek’s support for the work of 1in6.org.  I take deep satisfaction in this resolution and believe it will have a positive impact on those that can benefit most from the purpose of 1in6.org.”

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