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SUV rollover suit threatens Ford's future
SACRAMENTO A major lawsuit set for trial in Sacramento claims Ford Motor Co. deceived consumers about the safety of its Explorer sport utility vehicles and threatens more than $2 billion in profits Ford earned from Explorers built in the 1990s and sold in California.
The class-action lawsuit, brought on behalf of more than 414,000 Explorer buyers, is so large that it puts the automaker at risk of collapse, a Ford defense lawyer said this week after a final pretrial hearing.
The trial is scheduled to start Monday before Sacramento Superior Court Judge David DeAlba, who will decide the case without a jury.
Ford lost $12.7 billion last year, said Malcolm Wheeler, a Denver attorney who heads Ford's trial team.
"This is a company that has had to lay off thousands of employees, a company struggling with a $3.5 billion negative net worth," he said.
Plaintiffs' lawyers contend that regardless of the financial impact, Ford should be punished for falsely marketing the safety and reliability of the Explorer, which it knew to be prone to roll over because of its high center of gravity and other factors.
Tab Turner, a Little Rock, Ark., lawyer who pioneered SUV rollover lawsuits involving the Ford Bronco II and Explorers and has sued Ford more than 1,000 times in death-and-injury cases, will be the plaintiffs' lead trial counsel.
"This vehicle is one of the most dangerous vehicles ever produced in this country," Turner said.
Marketed as a replacement for family station wagons, the Explorers built in the 1990s have a tendency to flip over during evasive maneuvers at speeds over 40 mph, he said.
Ford knew of the Explorer's problems but decided it was more profitable to produce the vehicle without changing its design, he said.
A marketing campaign then touted the Explorer's safety and reliability for everyday use.
In their lawsuit, the plaintiff attorneys claim Ford's deception cost the state's car buyers about $500 million when the value of their vehicles fell once the alleged defects became widely known.
In addition, the plaintiffs are seeking a return of profits Ford earned from its alleged wrongdoing.
The lawsuit doesn't demand a specific amount of money, but the plaintiffs must spell out what they are seeking the morning trial begins. DeAlba has broad discretion to order Ford to pay, should he find the company violated state consumer-protection laws.
The suit was filed under the state's unfair competition and false advertising statutes, which are considered among the nation's strongest.




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