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GM Faces $10 Billion Class Action Lawsuit for Delayed Vehicle Recalls

General Motors Faces Class Action Lawsuit for $10 Billion in Losses for Delayed Vehicle Recalls

class action lawsuitGeneral Motors has faced numerous personal injury and wrongful death lawsuits this year, related to the ignition switch defect that led to dozens of vehicle recalls for older model cars and SUVs. Now, a potential class action lawsuit has been filed against General Motors on behalf of drivers whose cars fell in price after the automotive manufacturer issued vehicle recalls for over 27 million of their cars in the past year.

The potential class action lawsuit claims that GM customers have lost at least $10 billion in value for cars ranging from July 2009 to July 2014 models. Although many of the complaints against GM have centered around the potential crash hazard their older model cars represent – usually model years 2004 and 2005 – this class action claims that people who own more recent GM-produced vehicles have suffered economic losses because the company’s image has been tainted with the public. The potential class action consolidates 68 claims against GM, through a 700-page “master filing.”

The class action lawsuit was filed specifically against “New GM,” the term the company uses for itself after it settled a bankruptcy filing in 2009 and went on to revamp the company internally. Customers of “New GM” have suffered, according to the Manhattan federal court filing, economic losses because of actions taken by “Old GM.”

“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.”

According to the filing, 2010 and 2011 model year Chevrolet Camaros lost about $2,000 in value; the Pontiac Solstice circa 2009 also lost $2,900 in value.

A smaller class action lawsuit is also being considered, involving “Old GM” customers who suffered both economic and physical damages related to the ignition switch vehicle recall. These consumers are unsatisfied with the personal injury compensation fund set up by GM.

The 2014 vehicle recalls, which began in February of this year, covered almost every aspect of GM’s vehicles. “The array of concealed defects is astounding,” the complaint said: “The defects affected virtually every safety system in G.M.-branded vehicles, including but by no means limited to the air bags, seatbelts, brakes, brake lights, electronic stability control, windshield wipers, sensing and diagnostic modules, and warning chimes.”

The Strom Law Firm Advocates for Consumer Protection Through Class Action Lawsuits

Class Action cases we have handled include:

  • a case against the managed care industry on behalf of physicians for systematically undercutting physician claims for payment for seeing patients;
  • race-based life insurance cases against life insurance companies for charging African Americans higher rates for industrial life insurance;
  • consumer cases included suing finance companies for adding credit life insurance on to consumer loans;
  • a predatory lending case against the title loan industry;
  • a predatory lending case against the mortgage industry for systematically steering clients into subprime lending

The class action lawyers at the Strom Law Firm enjoy a distinct statewide and national reputation for excellence in the area of consumer protection litigation and class action lawsuits. Contact the attorneys at the Strom Law Firm today for a free, confidential consultation to discuss the facts of your potential class action lawsuit. 803.252.4800



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