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