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.
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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