$10 Billion Class Action Lawsuit Against GM Says Vehicle Recall Devalued Cars

A new class action lawsuit against GM (General Motors) lawsuit filed, demanding $10 billion in compensation for owners of vehicles that fall under the automotive manufacturer’s massive 20 million unit vehicle recall.

According to this this latest class action lawsuit against GM, GM owes its customers three times its annual earnings in compensation for financial losses incurred by the customers, because the vehicle recall has seriously devalued their cars.

The lawsuit alleges that GM hurt its customers by concealing defects, leading to two major vehicle recalls that cover 20 million cars worldwide, which have a defective ignition switch. The main plaintiff, Anna Andrews, seeks class action status for customers who are victim of the vehicle recall – anyone who purchased a GM vehicle between the manufacturer’s 2009 bankruptcy and April 1st, 2014.

“GM’s egregious and widely publicized conduct and the never-ending and piecemeal nature of GM’s recalls has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did when the GM brand meant safety and success,” the complaint said.

Reportedly, GM’s vehicle resale value has gone down anywhere between $500 and $2,600, depending on the model.

“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, one of the attorneys managing the class action suit. “The economic reality is that all GM owners are bearing the costs of GM’s actions.”

GM said that it would not comment on the pending vehicle recall class action lawsuit against GM, but did release a short statement. “However, and more broadly, I would say that many customers and independent analysts recognize that GM is delivering the strongest product lineup in its history,” GM spokesman Greg Martin said in an email. “The result of this market recognition has been increased sales, transaction prices and residual values.”

GM has issued a total of 44 vehicle recalls so far this year. The original ignition switch recall covered older model cars, mostly 2004 and 2005 models, that had faulty ignition switches that led to at least 54 crashes with injuries, and 13 deaths, according to the automotive manufacturer.

The Strom Law Firm Can Help with Defective Products and Vehicle Recall Cases

If you have experienced a problem with a defective product in your automobile, especially if a defective part has led to an auto accident or personal injury, and a proper vehicle recall notice has not been issued, you may be entitled to compensation. The attorneys at the Strom Law Firm can help. We can help you with complicated auto insurance claims, and make sure you receive the compensation you deserve to help you with lost income and medical bills. Our attorneys are licensed to practice in South Carolina, Georgia, and New York. We offer free, confidential consultations to discuss the facts of your case. Contact us today at (803) 252-4800.