General Motors named in $10 billion class action

Posted on: December 31st, 2014 by Steve Larson

CarGeneral Motors is the defendant in a lawsuit seeking to recover $10 billion for customers who allege that defects including faulty ignition switch problems caused 27 million cars to drop in value.  The suit alleges violations of state consumer protection statutes, breach of implied warranties, fraud by concealment, unjust enrichment and other claims over more than 60 recalls affecting GM-branded vehicles sold in the U.S. from model years 1997 to 2014.

The instant suits were filed in the U.S. District Court for the Southern District of New York, where hundreds of class actions have been consolidated against so-called “New GM,” which was allegedly absolved of any liabilities of “Old GM” after going through bankruptcy.

The proposed class action seeks damages for a class of consumers and used-car dealers, including those who own or have owned or leased a new or used GM-branded vehicle sold between July 11, 2009, and July 3 of this year.

The cases are In re: General Motors LLC Ignition Switch Litigation, case number 1:14-md-02543, in the U.S. District Court for the Southern District of New York.