Ford Motor Co has agreed to settle class-action litigation covering plaintiffs in four states who claimed its Explorer sport utility vehicles were prone to rollovers, Ford said on Wednesday.
From Ford's position, we believe the settlement is fair and reasonable and in the best in interests of our customers and our shareholders, Ford spokeswoman Kristen Kinley said.
A preliminary approval hearing was scheduled for Monday, Kinley said, but declined to estimate the cost to Ford.
The settlement applies to about 1 million people in California, Connecticut, Illinois and Texas, according to the Associated Press, which cited Kevin Roddy, a New Jersey attorney and co-counsel for the SUV owners who brought the lawsuit.
The attorney, who could not immediately be reached, told the AP that the settlement would be filed later on Wednesday in Sacramento County Superior Court. It will allow vehicle owners to apply for $500 vouchers to buy new Explorers or $300 vouchers to buy other Ford or Lincoln Mercury products.
The settlements apply to Explorers from model years 1991 through 2001, Roddy said in the report.
(Reporting by Edward Tobin and Nick Zieminski; Editing by Tim Dobbyn)