GM Slapped with $35 Million Fine, Faces 79 Lawsuits Seeking Billions

Posted on behalf of Arnold Law Firm on May 20, 2014 in Recalls

General Motors 2.59 million-vehicle recall has prompted 79 lawsuits from customers demanding the lost value of their cars, seeking up to $10 billion in alleged economic loss.

According to a U.S. Bankruptcy Court filing, the automaker has been named in 20 class action lawsuits since April 30, all related to the ignition switch defect.

GM's liability in pre-2009 bankruptcy claims is uncertain at present, as a panel of judges is scheduled to rule on this later in May.

Meanwhile, GM has agreed to pay a $35 million fine after a U.S. safety investigation revealed the company concealed information related to the ignition switch defect from the public.

In a document addressing words GM employees should and should not use, managers emphasized the re-phrasing of any statement relating to a recall or defect to use words with more positive connotations, such as issue, or that the part may not perform to design.

GM adviceGM advice

Right and below: slides from a GM internal presentation in 2008

Are you a victim of a GM defective product? Contact a Sacramento personal injury lawyer at the Arnold Law Firm by calling (916) 777-7777. We charge no upfront fees and your initial consultation is also free of charge.

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