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General Motors Fined $35 Million in the Face of Class Action Litigation

Posted on behalf of Edwards Law Firm on May 21, 2014 in Consumer Alerts

Federal investigators have determined that General Motors withheld information relating to Februarys ignition switch recall for too long before revealing their findings. The company is now being fined $35 million for these issues.

Aside from being named in 79 customer lawsuits demanding compensation for the economic loss of their recalled vehicles, GM faces 20 class action suits related to the ignition switch recall since April 30.

The class actions claim the Old GM promoted the vehicles as safe and reliable without revealing any of the known issues. Allegations of successor liability are a common theme in the suits, and GM has asked a federal judge to shield it from responsibility in claims prior to its 2009 bankruptcy. A ruling is expected later this month on the request.

Also later this month, a panel of judges will rule on whether to combine these cases into one. 

GM adviceGM advice

Above: Slides from an internal presentation from the automaker shows management pressured employees to avoid key phrases like "defect" and "recall."

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