Ford Details Lawsuits in SEC Filing
June 21, 2001
Ford Motor Company's annual filing with the Securities and Exchange Commission (SEC) revealed that the automaker is facing several lawsuits over deaths and injuries stemming from rollovers of its Ford Explorer sport utility vehicle (SUV). The annual report specifically listed four pending safety-related lawsuits. The plaintiffs in these cases seek over $5 billion in damages. However, the company's actual outstanding legal claims may total well over the $5 billion mark. The company also faces shareholder derivative suits and securities fraud allegations, all arising from the company's handling of the Firestone tire / Explorer rollover situation.
One shareholder's lawsuit seeks damages, injunctive relief and "a return of all director compensation during the period of the alleged breaches" of fiduciary duty, and attorneys' fees. This derivative action claimed that Ford's board of directors breached the fiduciary duty owed to the shareholders and the company itself by not fully informing themselves regarding Firestone tires.
Ford Motor Company continues to defend the safety of the Ford Explorer. The company's Chief Executive Officer, Jacques Nasser, has repeatedly stated that the problems with Explorer rollovers are directly related to the blowout and tread separation of Firestone tires and not the vehicle itself.
-- Article Courtesy of InjuryBoard.com
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