F
Ford sues L.A. lemon law firm alleging 'utter fabrications' inflated fees by 7,000%
Article Summary
SELL- Ford Motor Co. (NYSE: F) is suing Quill & Arrow, a prominent L.A. lemon law firm representing drivers suing defective vehicles, for allegedly inflating fees by as much as 7,000% using an overseas army of low-paid, non-lawyers who billed as little as $13 per hour to file thousands of cases.
- Ford Motor Co. claims the firm used fabricated billing records and slowed down cases to drive up billable hours, instructing drivers not to communicate with Ford and pushing them toward filing a lawsuit.
- Ford argues the firm exploited California's unique lemon law, which allows attorneys to collect fees from the car maker rather than taking a percentage of client winnings, turning the law into a bonanza for plaintiff attorneys.
- The longer the case drags on, Ford argues, the more the law firm can reap in profit, and since 2021 Ford has paid Quill and Arrow more than $100 million, roughly half in attorney fees.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 3.8% | 25% | 20.0 ptsMinimal (3.8%) - Very weak |
| EPS Growth Next 5Y ? | 23.8% | 25% | 70.0 ptsGood (23.8%) - Solid outlook |
| Target Price Upside ? | 3.3% | 20% | 20.0 ptsMinimal Upside (3.3%) - Target: $14.53 vs Current: $14.06 |
| Gross Margin % ? | 7.8% | 15% | 10.0 ptsRazor-Thin (7.8%) - Weak pricing power |
| Drawdown from 52-Wk High ? | -20.9% | 15% | 40.0 ptsMild Pullback (-20.9%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About F
- Ford Motor Company develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles in the United States, Canada, the United Kingdom, Mexico, and internationally.
- It operates through Ford Blue, Ford Model e, Ford Pro, and Ford Credit segments.
- The company sells Ford and Lincoln internal combustion engine and hybrid vehicles, electric vehicles, service parts, accessories, and digital services for retail customers; develops EV and digital vehicle technologies, and software; and provides telematics and EV charging solutions.
- It also sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments.
- In addition, it engages in vehicle-related financing and leasing activities to and through automotive dealers.
- Further, the company provides retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.
- Additionally, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs.
- Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan.