GM Hit With $10 Billion Class-Action Lawsuit

Stephen Elmer
by Stephen Elmer

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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Stephen Elmer
Stephen Elmer

Stephen covers all of the day-to-day events of the industry as the News Editor at AutoGuide, along with being the AG truck expert. His truck knowledge comes from working long days on the woodlot with pickups and driving straight trucks professionally. When not at his desk, Steve can be found playing his bass or riding his snowmobile or Sea-Doo. Find Stephen on <A title="@Selmer07 on Twitter" href="">Twitter</A> and <A title="Stephen on Google+" href="">Google+</A>

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2 of 3 comments
  • Chavitz Chavitz on Jun 18, 2014

    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 Smartacus on Jun 18, 2014

    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.