Ford Motor (NYSE:F) will put up its arguments for a new trial in the Georgia case on December 19, the Wall Street Journal reported. Earlier, Ford challenged a Georgia verdict that imposed a hefty $1.7 billion in damages on the company for selling trucks that the plaintiffs alleged had unsafe roof structures.
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The Georgia lawsuit is related to the 2014 rollover crash, in which an elderly couple died. The plaintiffs alleged that the roof structure was unsafe and collapsed during the crash. However, the company argued that its roof structure is safe.
The WSJ report highlighted that Ford had been sued 58 times before, involving rollovers and roof crush allegations.
According to TipRanks’ data, legal and regulatory risks are among the top risk categories for Ford. For context, our Risk Factors tool shows that Ford’s legal and regulatory risks accounted for 20.8% of its total risks. What’s alarming is that Ford’s legal and regulatory risks are higher than the sector benchmark of 15.6%.
This implies that Ford is more prone to legal and regulatory risks than its competitors. While these risks are inherently uncertain, they can lead to reputational damage and adversely impact its financials and operations.
What is the Prediction for Ford Stock?
Ford Motor stock has lost about 40% of its value year-to-date. Despite this significant correction, analysts are cautiously optimistic about Ford stock. It has received six Buy, four Hold, and one Sell recommendations for a Moderate Buy consensus rating. Meanwhile, analysts’ price target of $17 implies 40.26% upside potential.
What stands out is that hedge funds bought 40.4M Ford stock last quarter. Moreover, Ford stock commands an Outperform Smart Score of eight on TipRanks.
