The Ford Motor Company, whose forthcoming electric truck plant in West Tennessee was landed by state leaders with $900 million in taxpayer incentives, has just settled a lawsuit brought by the state over claims the auto company engaged in misleading advertising that falsely inflated mileage claims for some of its vehicles over the past decade.
Ford agreed to pay Tennessee $317,000 in a settlement filed May 31 in Davidson County Chancery Court. The settlement is part of a $19.2 million deal struck with 40 states and the District of Columbia, who conducted a multistate investigation into Ford’s advertising practices. The investigation was led by Oregon, Texas, Illinois, Maryland, Vermont and Arizona.
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The distribution of the settlement funds is at state Attorney General Herbert Slatery’s discretion. The settlement says the funds may be used for consumer protection enforcement, consumer education or any other purpose permitted by state law.
A spokesperson for Slatery did not respond to a request for information on how the funds will be distributed.