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April 9, 2008
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Trek Files Suit Seeking To Sever Ties With Greg LeMond

Trek Files Suit To Sever
Relationship With LeMond
Trek Bicycle Corp. yesterday in U.S. District Court in Madison, Wisconsin, moved to "sever its relationship" with cyclist Greg LeMond, claiming that LeMond had "violated his agreement with the company in a couple of ways," according to Rick Romell of the MILWAUKEE JOURNAL SENTINEL. The "bulk of Trek's complaint ... involves accusations that LeMond has hurt the firm -- including its sales of LeMond-brand bikes -- by publicly disparaging [Lance] Armstrong." The complaint "doesn't specify the alleged disparagement, but it appears to consist of statements LeMond has made since 2001 about doping in professional cycling and questions about Armstrong's involvement." Romell notes the case "appears to turn on the bad feeling" between LeMond and cyclist Lance Armstrong, who also maintains an affiliation with Trek. Bike store chain Wheel & Sprocket Owner Chris Kegel: "You have these two superstars who are jealous of each other, and having them under the same roof has been a bit of a problem." LeMond in March "prepared a complaint and served it on Trek, but has not yet filed it in court." In his complaint, LeMond said that Trek has "tried to wind down his brand rather than fulfill a contractual obligation to put its best efforts behind marketing the LeMond bikes." LeMond's complaint also alleges that Trek has "'systematically sought to silence' LeMond in speaking about problems associated with performance-enhancing drugs" (MILWAUKEE JOURNAL SENTINEL, 4/9).

FIGHTING WORDS: Included in Trek's suit is an e-mail from a Trek customer, asking, "Has Greg always been a sniveling, insecure jerk who needs to denigrate others' accomplishments in order to boost his own self-esteem?" LeMond's attorneys, in a statement, said, "LeMond has been, and continues to be, an outspoken critic of doping in professional cycling, which should be consistent with what Trek touts as 'family values'" (Minneapolis STAR TRIBUNE, 4/9). Trek President John Burke yesterday said that the company in '07 met with LeMond and "told him Trek would not renew" his contract when it expires in 2010. Burke: "Greg's public comments damaged the LeMond brand, and our reputation with retailers and consumers." Burke indicated that Trek began licensing LeMond's name in '95 to make road bikes, and the brand earns about $15M in annual sales. Trek's LeMond-brand bikes mainly are manufactured in Asia, and Burke added that employees there and in the U.S. "will be shifted to other jobs" (AP, 4/8).

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