The Ford Motor Company has agreed to settle several class action lawsuits against it for advertising that their Ford Explorer SUV (sport utility vehicle) was safe – even though they knew that the vehicle had a tendency to rollover. As a result, hundreds of thousands of Explorer owners claimed that their vehicles declined in value.

‘Unsettling’ settlement

Although being called a ‘settlement’, many Explorer owners may feel rather unsettled by it. According to news reports, the settlement terms call for Ford customers, who purchased an Explorer from 1991 through 2001, to receive a $500 voucher to by a new Explorer or a $300 voucher to buy other Ford or Lincoln Mercury products – probably not what most consumers expected.

Vehicle owners had each expected to receive approximately $1,000, for a total of approximately $2 billion, because of the bad press that the Explorer has received over the past decade or so. Although the settlement won’t have final approval until the spring of 2008, Ford is expected to at least pay for the costs and attorneys’ fees involved in the lawsuits, which could reach upwards of $25 million. Explorer owners who are part of the settlement will receive notification of how to obtain their vouchers; however, anyone who brought a personal injury or wrongful death lawsuit against the company is not part of this settlement.

Hundreds of lawsuits have been filed against the company for wrongful deaths and serious injuries due to rollovers – both against Ford and Bridgestone/Firestone, the Tennessee based tire manufacturer, whose tires equipped Explorers for many years. Each company pointed fingers at the other, but it was consumers who ended up paying the price in the end – by way of injury or decreased value of their vehicle.

Better than nothing?

The parties agreed to this unusual settlement because of Ford’s unsteady financial position. The company, who didn’t admit any wrongdoing in these cases, has reported billion dollar losses, closed plants and announced several thousand layoffs since 2006.

If you’ve been injured due to an SUV rollover, defective tires or have questions about a personal injury or product liability matter, contact a qualified attorney whose practice focuses in these areas of law. To contact an attorney for a free, no obligation consultation, please click here.