GM Sued for $10 Billion Over Losses on 27 Million Cars
General Motors Co. (GM) was hit with its biggest lawsuit so far over serial recalls, brought on behalf of drivers of 27 million vehicles seeking more than $10 billion in compensation for fallen car prices.
The would-be class action against GM seeks to represent owners who bought or leased a recalled car from July 2009 to July 2014 and still have it, or sold it after mid-February when the recalls started, or had an accident that destroyed it after that date.
Detroit-based GM spurred the price drops by hiding at least 60 serious defects in around 27 million vehicles sold in the U.S., according to the complaint filed yesterday in federal court in Manhattan against “New GM,” as the carmaker became known after its 2009 bankruptcy and government bailout.
“New GM repeatedly proclaimed that it was a company committed to innovation, safety and maintaining a strong brand,” according to the filing. “The value of all GM-branded vehicles has diminished as a result of the widespread publication of those defects and New GM’s corporate culture of ignoring and concealing safety defects.”
The larger suit concerns cars made after the bankruptcy.
GM, the largest U.S. automaker, said in July that it was setting aside $400 million to $600 million to pay victims. Feinberg has received 1,371 claims in total, including 1,193 for non-fatal injuries. Twenty-five of those injury claims so far have been ruled valid.
The 2014 recalls covered “virtually every safety system in GM-branded vehicles, including but by no means limited to the air bags, seat belts, brakes, brake lights, electronic stability control, windshield wipers, sensing and diagnostic modules, and warning chimes,” according to the complaint.
Source: bloomberg- GM Sued for $10 Billion Over Losses on 27 Million Cars
