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Arizona Sues GM for $3 Billion
A lawsuit filed by Arizona's attorney general claims General Motors Co. defrauded the state's consumers by covering up known vehicle defects.
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A lawsuit filed by Arizona's attorney general claims General Motors Co. defrauded the state's consumers by covering up known vehicle defects. It also asserts that senior GM officials, including CEO Mary Barra, knew about many of the problems but failed to act promptly to fix them.
The complaint seeks a $10,000 civil penalty under state law for each of the estimated 300,000 recalled GM vehicles in Arizona.
In filing the lawsuit, Arizona breaks from a group of 48 state attorneys general that is pursuing a coordinated probe into GM's handling of the ignition switch recall announced in February.
Thomas Horne
Attorney General Thomas Horne tells The New York Times he decided to file his own lawsuit, which would collect civil fines rather than restitution for consumers, "because it's the best way to protect the citizens of Arizona."
The lawsuit notes GM has launched dozens of recalls this year. It cites consumer complains about many of the problems they address as evidence the company could have responded sooner.
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