Lawsuit Filed Against General Motors regarding alleged hidden defects
General Motors Co. was sued on behalf of vehicle owners regarding an ignition flaw in some small- model cars. Questions about this year’s recall of 1.6 million vehicles, remain to be answered.
Bob Hilliard is one of the lawyers who filed the complaint in the federal court of Corpus Christi, Texas, and aims to recover between $6 and $10 billion for the lost value of cars caused by the recall. Claims are made that GM was hiding the defects. Deaths resulted from crashes caused when the engines stopped because keys came loose.
What does General Motors say?
GM identified 12 deaths in connection with the recall of models made in the mid-2000s. Detroit-based GM, the largest U.S. automaker, is continuing to evaluate data and information related to the recall.
The GM company had to launch the recall at a time when they are trying to loose the “Government Motors” stigma caused by its bankruptcy and $49.5 billion U.S. bailout. The company is being investigated by the House Energy and Commerce Committee, the Justice Department and the Transportation Department.
GM shares has fallen 4.1 percent since the day before the first ignition-switch recalls were broadcasted.
The company spokesman Greg Martin says that GM is now focused on guaranteeing the safety and peace of mind of customers involved in the recall. He also claimed that putting the customer first, will guide them.
The complaint filed by Hilliard seeks class-action status to represent all vehicle owners affected by the recall. Hilliard feels that bankruptcy reorganization shouldn’t shield GM from liability. Bankruptcy would normally protect companies from new claims that predate the reorganization, but GM didn’t present the full degree of its ignition-switch obligations.
He explained that unrevealed awareness of possible exposure to litigation, is fraud. He said he was going to tell the bankruptcy judge to undo the liability of old GM, as it was the new GM’s sustained cover-up after the bankruptcy, that caused people to be hurt or killed.
Evidence and proof that the old GM had knowingly deceived the judge, will have to be presented.