Ford Motor Co. has filed a lawsuit against several prominent Southern California law firms, accusing them of a massive fraud scheme under California’s Lemon Law. The automaker alleges that these firms collected over $100 million in “phantom legal fees” by inflating billable hours and fabricating work records. Filed on Wednesday in Los Angeles federal court, the lawsuit names Knight Law Group, Altman Law Group, and Wirtz Law APC, among others, as defendants.
Ford claims that the attorneys involved violated the Racketeering Influenced and Corrupt Organizations (RICO) Act by spreading fraudulent billings across thousands of cases over several years. According to the Los Angeles Times, Ford described the invoices as a “magical mystery tour of fictitious billings.” The lawsuit specifically accuses Steve B. Mikhov, a founding partner at Knight Law Group, of orchestrating the scheme.
Knight Law Group has denied the allegations, calling the lawsuit a “thinly veiled attempt to silence firms” that hold automakers accountable. The firm asserts that the lawsuit mischaracterizes the facts and that their clients were not harmed.
Ford’s complaint highlights instances of alleged overbilling, such as Knight partner Amy Morse reportedly billing over 20 hours per day on multiple occasions. The automaker is seeking treble damages under the RICO Act, along with attorney fees and a ban on further payments to the defendants. The case is being handled by New York-based Kasowitz Benson Torres LLP, which has been in contact with federal authorities regarding the alleged fraud.
The lawsuit underscores ongoing tensions surrounding California’s Lemon Law, which requires automakers to cover legal fees for cases involving defective vehicles. Ford’s general counsel, Doug Lampe, stated that the investigation revealed a “massive scheme” involving “ghost hours” and fraudulent invoices.
Recent Comments