Class action against GM alleges recalls have reduced value of all GM vehicles

Posted on: July 21st, 2014 by Steve Larson

CarA recently filed class action lawsuit alleges that GM’s reputation has been so badly damaged by its recent onslaught of recalls that even vehicles not included in the recalls have depreciated in value, according to a consumer class action filed Wednesday seeking more than $10 billion on behalf of all GM vehicle owners.

The suit alleges GM misled consumers into purchasing or leasing their cars as they were marketed as safe and reliable, when in fact the company was actually intentionally hiding known defects and putting cost concerns over safety, eventually leading all GM vehicles to depreciate in value due to it’s the reduced value of the brand.

If certified, the class will include GM consumers nationwide who own or lease a new or used vehicle sold between July 10, 2009, and April 1, as well as consumers who sold their GM vehicles at a “diminished price” on or after April 1. The class excludes consumers who own or lease certain Chevrolet Cobalt, Chevrolet HHR, Pontiac G5s, Saturn Ions and Saturn Sky vehicles.

The suit is Andrews et al v. General Motors LLC, case number 5:14-cv-1239, in the U.S. District Court for the Central District of California.