CONSUMERS FOR AUTO RELIABLTY AND SAFETY

Sacramento Bee
December 4, 2007

Coupon deal in car suit cleared

Ford case lawyers get $25 million; for eligible [consumers], vouchers.

By Crystal Carreon

A Sacramento judge on Monday approved a massive settlement with Ford Motor Co., ending years of litigation over the auto giant's safety claims on its Explorer SUVs.

The agreement calls for attorneys in the case to get up to $25 million and sets the stage for more than 400,000 California residents to get up to $500 in vouchers to buy new Fords a deal criticized by consumer rights groups.

"I hate coupon settlements, especially when they make you go back to the company that did the 'dirty deed,'" said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a national nonprofit based in Sacramento. "It's disappointing."

At Monday's hearing, Judge David De Alba called the settlement "fair, adequate and reasonable."

He said the agreement was "clearly in the best interest of all concerned" and marked the first time in the country that such benefits could be awarded to nearly 1 million residents in four different states.

Under terms of the agreement, affected residents in California can apply for "discount certificates" at www.explorerCAsuit. com or at planned site www.ExplorerClaims.com for either $300 to purchase or lease any Ford, Lincoln or Mercury, or $500 to buy a new Ford Explorer.

The 2008 Ford Explorers retail from $25,000 to more than $30,000, according to recent manufacturer listings.

The coupon is valid for up to a year and can be transferred to an immediate family member and used with other Ford offers, according to the settlement terms.

The agreement also calls for up to $25 million in legal fees to be paid to about 30 plaintiffs' lawyers involved in the case including Sacramento attorney Tracey Buck-Walsh and lead attorney Tab Turner of Arkansas, who pioneered SUV rollover suits…. The attorneys are scheduled to return to court April 15 for a fairness hearing, the final legal procedure before the settlement terms become final.