GM Hit With $10 Billion Class-Action Lawsuit

GM Hit With $10 Billion Class-Action Lawsuit

A new class-action lawsuit has been filed against General Motors alleging that the recent recall crisis has tarnished the brand’s reputation enough to degrade the value of all new GM vehicles. 

The lawsuit, brought forward by Hagens Berman Sobol Shapiro in federal court in the Central District of California, alleges that owners of new General Motors cars have lost value in their vehicles due to the company’s damaged brand perception. Since the beginning of 2014, General Motors has recalled over 20 million vehicles for a variety of safety issues.

SEE ALSO: GM Recalls 3.2 Million More Cars for Ignition Switches

If the lawsuit is certified, the suit could represent as many as 15 million GM car owners and seek $10 billion for damaged value. The lawsuit cites an economic study that shows that even the value of non-recalled GM cars has been brought down by anywhere from $500 up to $2,600 a vehicle.

Anyone who bought or leased a GM vehicle between July 10, 2009, and April 1, 2014 will be eligible to join the class action suit.

“Had a purchaser of a 2010 Camaro known that the manufacturer had gone to such great lengths to hide safety defects on other GM cars, there is no way that purchaser would have paid full price,” said Steve Berman, managing partner of Hagens Berman. “The economic reality is that all GM owners are bearing the costs of GM’s actions.”

[Source: Detroit News]

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  • Elaine M. Hegedusich

    And what about those of us who bought these defective cars before 2009? I bought my HHR brand new when it first came out in 2006 and over the past 8 years I have been driving a car that they knew had a defect. Despite the fact that I perform regular maintenance on my car, including timing chain, and my car is in very good condition, who is going to want to buy my car when I am ready to sell it? BTW, after receiving at least 5 notices since this all started, and calling the dealership to have it replaced, they still don’t have the part. Maybe if they put all this money they spent for all these notices to work to make new parts, things would go faster. This is the second time in my life I have been burned by a Chevy…and the last. NEVER again will I buy a GM product…
    And I hope I see a class action suit for us buyers before 2006!

  • chavitz

    In Today’s Autoguide news , a very manipulative and dubious auto quality research firm, JD. Power reported that actually GM won the most top quality rankings In its individual brands. It sounds like GM threw its money into water by sponsoring the JD Power report in a wrong timing.

  • smartacus

    For the love of God, when will GM die?
    There are only two GM vehicles worth saving…and now that i think of it; the Vette and Silverado will not be missed either. Please Die GM, Please Die.