Big news out of Sacramento came late Wednesday afternoon. Ford Motor Co., which was facing a humungous class-action lawsuit involving a million consumers from four states, announced that a settlement has been reached and awaits approval by the court (http://www.sacbee.com/101/story/529480.html).
So what’s the deal? Consumers, who said in this class-action lawsuit that they were duped by Ford’s claims that the Explorer sport utility vehicle was a safe vehicle, will now qualify to apply for $500 discounts on a new Ford Explorer or $300 discounts other Ford vehicles. The settlement will apply to Explorers from model years 1991 to 2001. The lawsuit was brought forth by 414,000 Explorer owners in California, Illinois, Texas and Connecticut.
Thousands of deaths and injuries over the last decade have been suffered by occupants of Ford Explorers involved in rollover accidents. We have represented many of the injured and their families. As an example, on Monday, we are scheduled to start a trial against Ford in Los Angeles Superior Court. We are alleging that one of Ford’s poorly designed SUVs rolled over in an accident and the roof crushed in, paralyzing a passenger, Gloria Levesque. Gloria was a Montessori school teacher for 25 years before being catastrophically injured and permanently unemployable as a result of the accident.
So, really, who benefits from this class action lawsuit settlement? Maybe the attorneys, definitely Ford – but what about the consumers? Let’s look a little closer. How does a measly $500 or $300 discount toward another Ford vehicle compensate consumer, punish the manufacturer and prevent unsafe products from entering the American market place?
Pedro Morillas of the California Public Interest Research Group (www.calpirg.org) is quoted in a Sacramento Bee article as saying,” Five hundred million dollars does sound like a lot of money, but Ford may have gotten a better deal than they deserved.”
In some respects I agree with Morillas. If the case had not settled and the plaintiffs won, Ford, according to its lawyers, would be in bankruptcy. It may not have been able to pay the judgment. It that sense Ford may have gotten a better deal than they deserve.
This lawsuit should’ve aimed to make sure that Ford was punished for producing defective vehicles and ensure that no auto manufacturer in the future would dare market an unsafe product to the American public. To take it further, it should been a warning to every manufacturer that pushing any unsafe product into the American market place will not be tolerated and the manufacturer will be held accountable.
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