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GM Loses Bid to Merge California Recall Lawsuit
A federal court judge in New York City has declined to rule that a California lawsuit concerning at least 35 safety defects in General Motors Co. vehicles should be merged with more than 100 similar cases in New York.
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A federal court judge in New York City has declined to rule that a California lawsuit concerning at least 35 safety defects in General Motors Co. vehicles should be merged with more than 100 similar cases in New York.
GM requested the merger. But U.S. District Judge Jesse Furman, who is overseeing the combined lawsuits in Manhattan, agreed with California that the state has the right to enforce its own regulatory powers locally.
The California lawsuit was filed in June. It claims GM violated state laws against deceptive practices by concealing or failing to disclose dozens of defects, including faulty ignition switches. GM announced the ignition-switch recall in February. Since then the company has added 74 other campaigns covering a wide variety of safety problems in more than 26 million vehicles in the U.S.
The California lawsuit seeks $7,500 in combined damages per violation of the state's unfair competition and false advertising laws.
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