Ford’s fraud lawsuit against Lemon Law firms collapsed in court, but the judge left a door open for a December comeback

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A federal judge in California has dismissed Ford’s high-profile lawsuit against several law firms accused of inflating fees and exploiting the state’s Lemon Law system.

The automaker had alleged that these firms engaged in a pattern of fraudulent billing that violated the Racketeering Influenced and Corrupt Organizations Act, better known as RICO. The case drew attention not only for its legal implications but also for the scale of Ford’s claims against the lawyers involved.

Read: Lawyer Allegedly Billed 57 Hours In A Day And Ford Isn’t Laughing In Rico Lawsuit

In the suit filed in May, Ford argued that roughly half of the legal fee submissions it received were fabricated or grossly exaggerated. The company said the firms had taken advantage of its statutory duty to cover attorney costs tied to Lemon Law disputes, turning what was meant as consumer protection into a profit mechanism.

Disputed Billing Practices

Among the more eye-catching allegations, Ford cited the billing records of Amy Morse, a partner at Knight Law Group, who the company claimed “billed more than 20 hours per day on at least 66 occasions.

Ford also alleged she charged for more than 24 hours on 34 separate days and, in November 2016, logged what it described as an improbable 57.5-hour workday. The figures became a centerpiece of Ford’s argument that the billing practices were not only inflated but deliberately misleading.

However, earlier this week, U.S. District Judge Michelle Williams Court said that Knight Law Group and its co-defendants were protected by Noerr-Pennington immunity, a legal doctrine that bars antitrust claims against parties that are petitioning the government.

The judge further determined that Ford’s RICO allegations were insufficiently supported, leaving the automaker’s case without a legal foothold.

What Happens Next?

Ford now has until December 22 to amend and refile its lawsuit if it intends to continue pursuing the matter.

The Blue Oval had accused Knight Law Group, The Altman Law Group, and Wirtz Law, as well as several individual lawyers, of defrauding not only Ford but multiple other car manufacturers through similar schemes.

According to Ford, Knight Law Group later began retracting certain payment requests to “cover their tracks and conceal their fraudulent conduct,” a move the company said reflected a broader pattern of misrepresentation.

In a statement issued to Reuters, Ford counsel Douglass Lampe said he was disappointed the claims had been dismissed, but added that the court “did not find that Ford was wrong on the facts or that the Lemon Law lawyers did not commit fraud.”