You are using an older browser version. Please use a supported version for the best MSN experience.

Two New Class Action Lawsuits Filed Over GM Recalls

Motor Trend logo Motor Trend 10/16/2014 Jake Holmes

General Motors faces two new class-action lawsuits over diminished value of used cars due to GM recalls. The two suits, from law firm Hagens Berman, allege that GM's extensive recalls, "have caused consumers to lose value in their GM vehicles."

One of the lawsuits concerns cars that were affected by GM's wide-ranging ignition switch recalls. The lawsuit, which concerns vehicles bought or leased before GM's bankruptcy proceedings in 2009, says that the value of those cars has significantly decreased due to the widely publicized ignition-switch problems. According to Hagens Berman, plaintiffs say the resale value of the 2010 and 2014 Chevrolet Camaro has fallen by $2000 due to the recall problems, while the value of a 2009 Pontiac Solstice fell $2900.

Another lawsuit alleges that GM, "concealed facts about its safety defects to consumers." It will attempt to recover losses for anyone who leased or purchased a new GM car between July 11, 2009, and July 3, 2014. The law firm expects to recover as much as $10 billion due to the "more than 60 recalls affected more than 27 million GM-branded vehicles" covered by the suit.

In an emailed statement, GM said, "The court has not determined whether it is appropriate to treat these matters as class actions and GM intends to vigorously defend against plaintiff’s claims that GM vehicles have reduced resale value."

GM Ignition Assembly Recall Chevrolet Cobalt Installation 3© Provided by MotorTrend GM Ignition Assembly Recall Chevrolet Cobalt Installation 3

In the wake of its ignition switch recall problems, GM has been served with dozens of lawsuits seeking to recover damages for vehicle owners and drivers. As for victims of crashes due to the ignition switch problem, those lawsuits are processed through a compensation fund managed by attorney Kenneth Feinberg. The fund has so far linked 27 deaths to crashes caused by defective ignition switches that turned off unexpectedly.

Sources: Hagens Berman, GM

AdChoices
AdChoices

More from Motor Trend

Loading...

image beaconimage beaconimage beacon