Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Ford Motor Company (F)

Core Viewpoint - A securities class action lawsuit has been filed against Ford Motor Company for failing to disclose significant quality assurance deficiencies and their impact on warranty costs and profitability during the class period from April 27, 2022, to July 24, 2024 [1][2]. Group 1: Allegations and Financial Impact - The lawsuit alleges that Ford had deficiencies in quality assurance of vehicle models since 2022, leading to increased warranty costs [2]. - It is claimed that Ford's warranty reserves did not accurately reflect the quality issues in vehicles sold since 2022, which could negatively impact the Company's profitability [2]. - Following the announcement of second quarter 2024 financial results, Ford revealed that profitability was affected by an increase in warranty reserves and higher warranty costs, with total warranty and recall costs reaching $2.3 billion, which was $800 million more than the first quarter and $700 million more than the previous year [3]. Group 2: Market Reaction - On July 25, 2024, Ford's share price fell by $2.51, or 18.36%, closing at $11.16 per share, following the release of the financial results and the associated news [3].