Chicago Business Litigation Lawyer Blog
When buying a car, there are many aspects to consider before deciding what to buy. Aside from cost, car buyers tend to be most concerned with safety and performance. No one wants to drive a car they don’t feel safe in. The reputation of the company making the car is also a factor, but when a car company sacrifices the safety of its vehicles to maintain its reputation, it can lose big in the long run.
Such is allegedly the case with GM, which, according to a recent class action lawsuit, allegedly failed to recall faulty vehicles the company allegedly knew were unsafe to drive. The lawsuit accuses GM of being overly concerned with cutting costs and making a profit, a factor that allegedly resulted in the neglect of the safety of its cars. GM denies the claims.
The lawsuit is petitioning the court for consolidation of 68 cases from around the country on behalf of owners of newer-model GM cars. The lawsuit is seeking compensation for car owners for the lost value of their cars that allegedly resulted from the safety issues coming to light. According to the complaint, the “new GM” that emerged after the 2009 bankruptcy “produced an inordinate number of vehicles with serious safety defects,” which it allegedly ignored until 2014, when it recalled about 27 million vehicles in the United States.
The lawsuit only covers cases of alleged economic loss involving cars bought or leased after July 10, 2009, the day GM emerged from bankruptcy, because the company’s restructuring agreement protects it from liability claims that stem from incidents before that date. GM is currently petitioning Judge Robert E. Gerber, who presided over the company’s bankruptcy proceedings, to enforce that provision by dismissing the pre-bankruptcy cases. Continue reading ›