General Motors is now facing two new lawsuits with a total of $10 billion in compensation on the line. The two suits allege that GM's ignition switch recall has cause the values of their vehicles to drop.
The first and largest suit is seeking to represent owners who bought or leased a recalled car from July 2009 to July 2014 and either still owns it, traded it in after the recall was announced back in February, or got into an accident. Steve Berman, one of the attorneys involved, tells Bloomberg that more than 20 million customers could join in the suit.
“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,” stated the filing.
The second suit is for those owners of vehicles bought or leased before GM's bankruptcy proceedings in 2009. This suit could run into some problems as a bankruptcy judge still needs to rule on whether or not claims for accidents and economic losses made before the bankruptcy would be allowed.
GM in a statement said that it would “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.”