Ford Motor Company designs, manufactures, and services cars and trucks. The Company also provides vehicle-related financing, leasing, and insurance through its subsidiary.
According to the law firm press release, 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.
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 February 7, 2018, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs voluntarily dismissed this case on May 8, 2018.