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    William Maley

    General Motors Gets Smacked With Two Class-Action Suits

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      Allege That The Ignition Switch Recall Caused Vehicle Values To Drop

    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.”

    Source: Bloomberg

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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    What a sad waste of time for the courts, these lawyers are not about protecting and representing owners / leasors, but about taking money and wasting a companies resources.

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    Hard to prove the recalls caused values to drop.  Pontiac and Saturn resale values were crushed when they killed the brands off.  And it isn't like the Cobalt or mid 2000s Malibu or Impala had any resale value to begin with.  A lot of the recalled cars are fleet sale queens or discontinued models/brands.  But lawyers will be lawyers and try to capitalize on it none the less.

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    GM's resale sucks anyhow. Took my 2014 Cruze to a few Chevy Dealer's and Carmax. Best offer was $11,500 at Carmax of all places! What a joke! The GM Dealers don't even want to give you anything for their own product! I'll remember that next time when I'm bypassing the Chevy dealer to head over to the Honda dealership.

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    Hard to prove the recalls caused values to drop.  Pontiac and Saturn resale values were crushed when they killed the brands off.  And it isn't like the Cobalt or mid 2000s Malibu or Impala had any resale value to begin with.  A lot of the recalled cars are fleet sale queens or discontinued models/brands.  But lawyers will be lawyers and try to capitalize on it none the less.

     

     

    True...all true......

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