CASES
Ford Motor Company (2010)
Class Period: Jun 21, 2010 to Jun 30, 2010
Lead Plaintiff Deadline: Sep 10, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Ford Motor Company (2010) (F-S) ("Ford" or the "Company") on behalf of all securities purchasers from June 21, 2010 through June 30, 2010, inclusive ("Class Period"), in the United States District Court of Delaware.
The complaint alleges that in early 2002, Ford Motor Company Capital Trust II (the "Trust") sold 90 million Cumulative Convertible Trust Preferred Securities ("Trust Preferred Securities") for $50 each to the investing public, and conveyed those funds to Ford Motor Company in return for Ford's 6.5% Junior Subordinated Convertible Debentures (the "Debentures") due January 15, 2032. Under the instruments governing the Trust and Debentures, quarterly interest on the Debentures is paid to the Trust which in turn makes distributions to holders of the Trust Preferred Securities. As permitted under the governing instruments, Ford deferred interest payments on the Debentures commencing in the first quarter of 2009, and, as a result, payment of quarterly distributions on the Trust Preferred Securities was also deferred. On June 30, 2010, Ford issued a press release stating, among other things, that it would pay in cash all accrued distributions previously deferred on the Trust Preferred Securities and that it intended to resume making quarterly distribution payments starting with the payment due on July 15, 2010, and that the accrued distributions would be paid to holders of record of the Trust Preferred Securities on June 30, 2010.
The complaint alleges that Ford and the Trust failed to comply with the Securities and Exchange Commission ("SEC") Rule 10b-17 in connection with this distribution in that they failed to provide ten (10) days prior notice of the distribution as the rule requires.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.