General Motors is being sued in a California court for allegedly concealing widespread defects in its vehicles that led to fatal accidents.
Last month, General Motors announced a recall campaign affecting 1.6 million vehicles. When GM reorganized in 2009 following its bankruptcy claim, the company became a different legal entity that isn’t responsible for legal claims for incidents that took place before July 2009, which is what the proposed class-action suit focuses on. It says plaintiffs should be allowed to sue over incidents before that point.
The named plaintiff in the suit, Katie McConnell, owns a 2007 Saturn Ion coupe and is seeking at least $350 million in damages. Steve Bergman of Hagens Bergman Sobol Shapiro in Seattle is the lawyer that field the suit.
Several lawsuits have been filed against GM, claiming the recall hurt the re-sale value of the affected vehicles. The suit filed in California yesterday said the old GM knowingly sold defective vehicles and that the new GM continued doing so and should therefore be liable for the earlier incidents.
The recall spurred an internal investigation by General Motors and a probe by the U.S. Justice Department. Pundits have already said that the GM controversy, while serious, is not nearly as egregious as Toyota’s unintended acceleration coverup. Yesterday, Toyota settled with federal prosecutors on a $1.2 billion fine for covering up serious defects in its vehicles.
[Source: Automotive News]
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