GM Recall: First Lawsuit Has Been Cast, But Does It Stand a Chance?
Vehicle owners in Texas have banded together in a lawsuit against General Motors (NYSE:GM) in the most recent chapter of the ongoing recall debacle that seems to get more spiraling in nature each week, Bloomberg has reported. Bob Hilliard, one of the lawyers who filed the complaint on Friday in federal court in Corpus Christi, said he’s looking to recover $6 billion to $10 billion for the lost value of cars affected by the recall, which has so far included 1.6 million vehicles.
“These vehicles, all they have to do is get on the road for this defect to manifest,” Hilliard told Bloomberg in a phone interview. “This is a true safety defect.”
The complaint is largely based on claims that GM hid the defects and the “diminution in value” of the owners’ vehicles, and not deaths resulting from crashes when the engines stopped because keys came loose, Bloomberg reported. General Motors has confirmed that it believes twelve deaths were the direct result of the ignition fault, but a watchdog group last week that the ultimate body count could be closer to 300, after reviewing numerous accident reports.
Multiple investigations are underway since the initial recall was launched in January, including an internal one by GM, one by the National Highway Traffic Safety Administration, and probes into the company’s timeliness by the NHTSA and a House subcommittee. The Justice Department and the Transportation Department are involved as well.