General Motors and its legal team are working diligently to ensure plaintiffs are unable to proceed in a lawsuit over vehicles’ loss of value.
According to Reuters, plaintiffs argue their GM vehicles have lost significant value following a slew of recalls not only involving the ignition switch component, but other items, too. The plaintiffs’ lawyer stated the “avalanche of defects” has “harmed GM’s reputation as a safe and reliable manufacturer, meaning its customers would not be able to resell their vehicles for as much as when they bought them.”
For GM, lawyer Richard Godfrey stated if the plaintiffs are endorsed by the court, it would open a massive liability for any automaker, setting a precedent. Even if the recall is not related to safety, it would put an incredible burden on automakers to be held responsible for depreciation.
“This is not opening the door, it is destroying the door frame,” he said.
The plaintiffs’ claims are worth more than $10 billion, as the court weighs whether to dismiss the proposed class action lawsuit against GM. A decision is expected to arrive in a few weeks.