Ford Motor (F : NYSE : US$13.14), Net Change: -0.21, % Change: -1.57%, Volume: 109,953,791
Overpaid by $4.5 million? Sounds like Keith Ballard. Ford will have to pay nearly $2 billion in damages to several truck dealers after a judge upheld a February decision against the company. In February, a dealer sued Ford, saying the company had overcharged them on the purchase of commercial trucks, awarding the dealer $4.5 million, and saying that the company would have to pay about 3,000 other dealers as part of a class action lawsuit. According to the ruling, Ford made dealers pay $800 million more than they should have for nearly 500,000 trucks sold. The suit was launched in 2002 by a Youngstown, OH based dealer who represented the class. Ford says it plans to appeal the ruling as it believes legal errors were made by the trial court.
In a statement, Ford said, “We are confident that it will be reversed,” and that its pricing “caused not harm to our dealers. Rather, it brought significant benefit to the dealers.” However, legal representatives for the dealers believe that the decision will stand. One lawyer said, “The court of appeals has already upheld this judge when he certified this as a class action.”
The $2 billion award is five times higher than any other verdict against Ford in a lawsuit.