We may see some interesting type lawsuits and new case law develop in the very near future as Ford Motor Company's stock drops. Why you ask? Well it appears Ford Motor Company is going to go private, but in doing so some might say that it is purposefully finding things to do in order to lower its stock price prior to going private. Will those shareholders who have lost money due to the fast stock price drop sue? Will some lawyer try to file that class-action case against Ford Motor Company?
This will be an interesting class-action lawsuit in that they are damned if they do and damned if they don't and this could prevent future companies from attempting to go private. More and more companies are considering this due to the massive over regulation of the SEC Securities Exchange Commission and the incredible class-action lawsuits from groups of minority investors.
Would such a suit hold water? No, probably not really because all the US Automakers are having troubles. Even DaimlerChrysler is attempting to hold their head up high as they manuerver thru though times and turbulent waters. General Motors, DaimlerChrysler and Ford Motor Company have all announced lay-offs. Ford Motor Company announced 300,000 lay offs to occur over the next few years and 14,000 will be leaving immediately whether they take the buy-put severance pay package or not. So, there are certainly some issues here as this game strategy un-folds.
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