Skip to comments.GM hit with $10 billion lawsuit saying recalls damaged brand
Posted on 06/18/2014 8:42:07 AM PDT by grundle
(Reuters) - A new lawsuit says General Motors Co should compensate millions of car and truck owners for lost resale value, potentially exceeding $10 billion, because a slew of recalls and a deadly delay in recalling cars with defective ignition switches has damaged its brand.
According to a complaint filed on Wednesday with the federal court in Riverside, California, GM hurt customers by concealing known defects and valuing cost-cutting over safety, leading to roughly 40 recalls covering more than 20 million vehicles this year alone.
It said this has caused a variety of late-model vehicles to lose roughly $500 to $2,600 in resale value.
Hagens Berman Sobol Shapiro, which filed the lawsuit, said the case could be worth more than $10 billion, and is the first seeking to force GM to pay a potential 15 million car and truck owners, not just those whose vehicles were recalled, for damage to its brand and reputation.
(Excerpt) Read more at finance.yahoo.com ...
GM should sue Obama for damaging the brand... but they made their bed with the fleas, selling this crap to the DHS by preference. Screw them
“Government Motors” is the new brand.
It’s like the VA.
Geeze, people should tune in. and the VA is going to look like the Mayo clinic when this is underway.
So, after the lawsuit further damages the brand, will the plaintiffs then be able to go back for another round? and again, and again?
I will never buy a new or used government motors car.
it is correct.
remember they TRIED to say the suits were blocked by the bankruptcy filing DESPITE the fact they, including the new government appointed ceo, hid the deadly defect claim information.
Then again Obama pretty much shreaded the GM reputation by edict overriding the law.
Certainly SOUNDS LIKE Government Motors...
Looks to me like somebody trying to kill GM, ‘cause that’s what would happen IMO.
this creates deflation.
GM cars are overpriced in comparison to other brands. You are denied many common features due to pot smoking overpriced union incompetent labor.
Wonder if it’s too late for Pontiac, Saturn and Oldsmobile owners to sue for brand damaging.
Sorry, but GM being crap has been known for decades, if you chose to buy an inferior brand in the first place you can’t sue the company after the fact.
This should be tossed with prejudice, especially since everyone knows that the owners of the vehicles will never seen anything more than a few bucks even if they win and the ambulance chasing attorney who never owned a GM will find himself a billionaire..
The only reason GM would fix this is risk of lawsuits.
Government take over of a business and install an affirmative action CEO and this is bound to happen.
GM should have been left to the dustbin of history. We’ve managed just find without Nash, Holden, AMC, Austin, DeLorean, Checker, and every other automobile failure.
Sounds like a good idea to me. They should have let GM go bankrupt the last time around. It would have been cheaper for taxpayers and better for all. The only ones who benefitted are the UAW.
The only reason you do recalls is the fear of getting caught.
That is the only reason a “recall” exists. The penalty for NOT doing the recall is greater. If the penalty is less, you don’t do a recall. Large companies and organizations have lawyers who handle that specific thing.
GM is playing the game that all large corporations do.
“Sounds like a good idea to me. They should have let GM go bankrupt the last time around......”
Na, GM would borrow from Odumbo, and simply not pay it back, like good little demonRats.
Let the company go bankrupt and reorganize after they wipe out their defined benefit and healthcare liabilities to unions.
We have plenty of competition in the auto industry, no need to prop up one company that made bad business decisions, let the market prevail.