Core Viewpoint - A class action lawsuit has been filed against Ford Motor Company due to alleged misleading statements and failure to disclose material facts regarding warranty costs and vehicle quality issues, leading to significant financial losses for investors [1][5]. Financial Performance - Ford's second quarter 2024 financial results indicated that profitability was negatively impacted by an increase in warranty reserves and higher warranty costs, totaling $2.3 billion, which is $800 million more than the first quarter and $700 million more than the same period last year [3][4]. Stock Market Reaction - Following the announcement of the financial results, Ford's share price dropped by $2.51, or 18.36%, closing at $11.16 per share on July 25, 2024, with unusually high trading volume [4]. Allegations in the Lawsuit - The lawsuit claims that Ford's management made materially false and misleading statements and failed to disclose significant quality assurance deficiencies, resulting in higher warranty costs and an inaccurate reflection of warranty reserves, which ultimately affected the company's profitability [5].
FORD ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Ford Motor Company and Encourages Investors to Contact the Firm