Episode Four

Ford Chooses to Conceal Rather Than Reveal

 

Episode Four: Ford Chooses to Conceal Rather Than Reveal

ATTORNEY FOR VERSATA SOFTWARE LANNY J. DAVIS
ASKS FORD MOTOR CORPORATION:
WHY NOT DISCLOSE TO SHAREHOLDERS POSSIBLE SHUTDOWN OF FORD PRODUCTION SYSTEMS IF FORD LOSES LAWSUIT FILED BY VERSATA?

Washington D.C., March 8, 2018: Attorney Lanny J. Davis has released his latest podcast here in which he asks Ford why it hasn’t disclosed to Ford shareholders the risk of a production shutdown if Versata wins its case alleging theft of Versata’s trade secrets in its automotive software.

Davis points out in the fifth of a series of podcasts that Ford’s use of substitute software, which Versata alleges in its case was improperly based on Versata trade secrets and patented technology, might be prohibited from continued use if Versata prevails. If that were to happen, Davis said, that could have significant negative effects on Ford’s business.

Davis asks the following questions in his podcast:
“Is such a risk [of a grinding halt to Ford’s essential production systems] something that a Ford shareholder would want to know about – more than in generalities, but in specifics? Would most shareholders want to know about the risk, even if Ford says it believes it will win the case? Knowing that, if the worst happened and the case is lost, Ford’s public share prices could plunge?”

In response to these questions, Davis says:
“We think so. “But Ford made a choice – to conceal rather than reveal. Why?”

Davis’ series of podcasts about the litigation against Ford, and other facts and allegations by Versata, can be found on the website, www.TheTruthAboutFord.com. You can listen to the 5th podcast in episode four here: http://www.truthaboutford.com/to-catch-a-thief-episode-four/.

Davis reminds listeners that the reason for the use of podcasts and other public messages is to defend Versata’s reputation since it cannot sue Ford for defamation for statements made by Ford in legal papers, which under the law are immune from defamation suits. Davis says that Versata’s allegations are yet to be proven and Ford has a different view. Davis says Versata trusts the judicial process, which he says should reach a fair and just verdict.

About Versata Software, Inc.
With a global presence covering 45 countries, Versata Software, Inc. and its affiliates solve the most complex business problems for the world’s largest organizations. Versata’s family of companies includes a number of leading enterprise solution providers, including Versata, Inc., Instance, Inc., Artemis International Solutions Corporation, Genzyme Corporation, Clear Technology, Inc., Everest Software, Tenfold Corporation, Cora Software, Inc., Evolutionary Technologies, Inc., and Alter Point, Inc. Versata distinguishes itself in the software industry by focusing on customer priorities as driven by value delivered. Versata’s market-leading Customer Success Program ensures customer involvement in product decisions and business priorities and provides twice-yearly opportunities for customers to score Versata’s performance against commitments. Versata’s world-class engineering capability ensures substantive and valuable product releases, thereby ensuring customer success. Versata’s relentless focus on customer priorities, coupled with an unmatched global engineering capability, provides Versata customers continuous innovation and repeatable value propositions. For more information, visit www.versata.com.

Contact:
Eva Bandola
ebandola@tridentdmg.com
(202) 684-3044
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Transcript of Podcast #5: Episode 4:

“To Catch a Thief: The Corrosion of Morality at Ford: Ford Chooses to Conceal Rather than Reveal”

This is Lanny Davis. Today I will focus on another example of moral corrosion at Ford Motor Company; this time directed at its most senior leadership. And this example affects Ford’s shareholders.

Ford has decided to keep its shareholders in the dark about the serious risk to Ford as a company, and thus, the risk to the value of shares owned by Ford’s shareholders. That risk is beyond the more than $1 billion that Versata experts say Ford will have to pay if it loses the case.

The more serious risk can be put simply in two words used by Ford – grinding halt.

One of Ford’s most senior managers said the Versata software provides (quote) “significant savings” to Ford. But far worse than the loss of that $1 billion, Ford executives know that if they lose the case and are prohibited by a court form using the copy-cat product they created, Ford’s essential systems for producing cars would in effect come to a grinding halt.

grinding halt that could seriously add to its costs and reducing its profits.

grinding halt that could cause a significant drop in Ford’s share values.

Is such a risk something that a Ford shareholder would want to know about – more than in generalities, but in specifics? Would most shareholders want to know about the risk, even if Ford says it believe it will win the case? Knowing that, if the worst happened and the case is lost, Ford’s public share prices could plunge?

We think so.

But Ford made a choice – to conceal rather than reveal. Why?

Maybe Ford is so confident they will win the case, there is no need to tell Ford’s shareholders. But would Ford shareholders prefer to know the risks and assess them for themselves?

We think so.

One final reminder: These podcasts are intended to correct the public record and defend Versata’s reputation from Ford’s false and defamatory claims that our ACM product, which they publicly praised through the years, is inferior and not even original. But we can’t sue Ford for defamation, since legal rules give Ford absolute immunity from defamatory statements. So, we must depend on the public record to defend our reputation, and not defamation lawsuits.

So, we will continue to tell all the facts …and we believe Ford Shareholders deserve to hear them too.
In the next podcast we will reveal Ford insiders and senior managers who sold large amounts of Ford stock during the period of this law suit.

Stay tuned.