The lawsuits were inevitable, but General Motors has now been hit by its biggest lawsuit to date: $10 billion for compensation over the loss of value of 27 million vehicles due to serial recalls. The lawsuit asserts GM facilitated the loss in values by hiding 60-plus defects for vehicles sold in the U.S.
This class-action lawsuit aims to represent everyone who bought or leased a recalled car from July 2009-2014 and is either still in possession of it, sold it after mid-February when the ignition recalls started, or had an accident that totaled the vehicle after February.
“New GM repeatedly proclaimed that it was a company committed to innovation, safety, and maintaining a strong brand. The value of all GM-branded vehicles has diminished as a result of the widespread publication of those defects and New GM’s corporate culture of ignoring and concealing safety defects,” says complaint filed earlier this week in U.S. District Court in Manhattan.