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GM hit with $10 billion lawsuit saying recalls damaged brand
Reuters/yahoo.com ^ | July 18, 2014 | Jessica Dye and Jonathan Stempel

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 ...


TOPICS: Miscellaneous
KEYWORDS: gm; gmrecall; obamamotors
Obama had the government take majority ownership of GM, and under his leadership, the company refused to recall defective cars which had killed more than a dozen people. This was highly unusual as the average recall involves zero deaths. Only after ownership was returned to the private sector did these defective vehicles get recalled.
1 posted on 06/18/2014 8:42:07 AM PDT by grundle
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To: grundle
I hate lawsuits like this.
It's much more important that they fix the problems than having to be concerned about brand reputation.
I hope it goes nowhere.
It would of course be better if they didn't make defective cars in the first place, but good luck with that in a government owned union shop.

2 posted on 06/18/2014 8:46:34 AM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
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To: grundle

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


3 posted on 06/18/2014 8:47:37 AM PDT by lavaroise (A well regulated gun being necessary to the state, the rights of the militia shall not be infringed)
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To: grundle

“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.


4 posted on 06/18/2014 8:48:02 AM PDT by stanne
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To: grundle

So, after the lawsuit further damages the brand, will the plaintiffs then be able to go back for another round? and again, and again?


5 posted on 06/18/2014 8:49:12 AM PDT by Dr. Sivana ("If you’re litigating against nuns, you’ve probably done something wrong."-Ted Cruz)
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To: grundle

I will never buy a new or used government motors car.


6 posted on 06/18/2014 8:49:14 AM PDT by ealgeone (obama, borderof)
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To: grundle

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.


7 posted on 06/18/2014 8:50:33 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: grundle

Certainly SOUNDS LIKE Government Motors...


8 posted on 06/18/2014 8:53:58 AM PDT by Mr. K (Palin/Cruz 2016)
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To: grundle

Looks to me like somebody trying to kill GM, ‘cause that’s what would happen IMO.


9 posted on 06/18/2014 8:57:13 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.)
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To: rockinqsranch

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.


10 posted on 06/18/2014 8:59:16 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: grundle

Wonder if it’s too late for Pontiac, Saturn and Oldsmobile owners to sue for brand damaging.


11 posted on 06/18/2014 8:59:43 AM PDT by chrisser (Senseless legislation does nothing to solve senseless violence.)
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To: grundle

Scrap GM.


12 posted on 06/18/2014 9:12:53 AM PDT by Darksheare (Try my coffee, first one's free..... Even robots will kill for it!)
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To: grundle

2BIG2FAIL


13 posted on 06/18/2014 9:13:34 AM PDT by Old Yeller (Anything is possible, if you don't know what you're talking about.)
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To: grundle

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..


14 posted on 06/18/2014 9:15:36 AM PDT by HamiltonJay
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To: BitWielder1

The only reason GM would fix this is risk of lawsuits.


15 posted on 06/18/2014 9:17:40 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum
Yes but this lawsuit would discourage recalls. That's worse.

16 posted on 06/18/2014 10:59:30 AM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
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To: grundle

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.


17 posted on 06/18/2014 11:00:01 AM PDT by Organic Panic
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To: rockinqsranch
Looks to me like somebody trying to kill GM, ‘cause that’s what would happen IMO

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.

18 posted on 06/18/2014 11:00:54 AM PDT by rllngrk33 (Things will continue getting worse until at least January 2017.)
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To: BitWielder1

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.


19 posted on 06/18/2014 12:25:04 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: rllngrk33

“Sounds like a good idea to me. They should have let GM go bankrupt the last time around......”

Agree.


20 posted on 06/18/2014 12:46:47 PM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.)
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To: rockinqsranch

Na, GM would borrow from Odumbo, and simply not pay it back, like good little demonRats.


21 posted on 06/18/2014 12:46:51 PM PDT by SgtHooper (This is not my tag!)
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To: grundle

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.


22 posted on 06/18/2014 12:48:49 PM PDT by 1Old Pro
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