Ford Leaders Hit With Investor Suit Over Warranty Accounting (1)

Ford Motor Co.‘s directors and top executives are responsible for the automaker’s failure to disclose quality control problems and higher warranty costs than expected, an investor alleges.

The leaders’ actions harmed Ford by causing it to overpay for stock repurchases by about $116 million and by subjecting it to a proposed securities class action, stockholder Richard Rich says on behalf of the company. He filed his derivative suit Nov. 1 in the US District Court for the Eastern District of Michigan.

Ford’s warranty and recall costs came to $2.3 billion in the second quarter of 2024, according to ...