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GM Lawsuit Seeks $10 Billion for Economic Impact of Recalls
A proposed class-action lawsuit claims General Motors Co. should pay its customers more than $10 billion to offset the lost value of their vehicles from dozens of recalls launched by the company this year, Bloomberg News reports.
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A proposed class-action lawsuit claims General Motors Co. should pay its customers more than $10 billion to offset the lost value of their vehicles from dozens of recalls launched by the company this year, Bloomberg News reports.
The complaint filed in U.S. District Court in Manhattan hopes to represent the owners of some 27 million 2009-2014 model vehicles among the 30 million cars and light trucks GM has recalled since February.
The lawsuit claims the flurry of callbacks, many of which involve vehicle safety systems, has hurt the resale value of all models targeted by the campaigns.
The lawsuit focuses on cars and trucks built by "new" GM after it emerged from bankruptcy in July 2009. A smaller companion lawsuit filed earlier by the same law firm seeks compensation for the slumping value of cars built by "old" GM that have been recalled to replace defective ignition switches linked to at least 27 fatalities.
A bankruptcy judge is expected to decide early next year whether new GM is liable for the misdeeds of old GM. The company was specifically shielded from such claims under terms of its bankruptcy reorganization in 2009.
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