On February 7, 2018, Pomerantz LLP was appointed Co-Lead Counsel in a class action lawsuit filed against Ford Motor Company ("Ford" or the "Company") and certain of its officers. The class action, filed in United States District Court, for the Eastern District of Michigan, and docketed under 17-cv-13536, is on behalf of a class consisting of investors who purchased or otherwise acquired Ford securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
Ford Motor Company designs, manufactures, and services cars and trucks. The Company also provides vehicle-related financing, leasing, and insurance through its subsidiary.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) flaws in the Company's manufacturing processes, supply chain, and/or quality control rendered at least 841,000 Ford vehicles unsafe to drive; (ii) the foregoing issues, when revealed, would foreseeably subject Ford to additional regulatory scrutiny and impact the Company's profitability; and (iii) as a result, Ford's public statements were materially false and misleading at all relevant times.
On October 27, 2017, the U.S. National Highway Traffic Safety Administration ("NHTSA") announced a preliminary investigation into 841,000 Ford vehicles, citing concerns that the vehicles' steering wheels could detach while the vehicles are in motion. NHTSA stated that it is specifically investigating 2014-2016 model Ford Fusion sedans.
On this news, Ford's share price fell $0.21, or 1.71%, to close at $12.06 on October 27, 2017.