GM 10,000,000,000 lawsuit?

[catan70]

I was looking and car and driver has a article stating that gm's death toll has now hit 29 (sad). The lawsuit may go up to 10 billion now. Based upon that, toyota got a 1.2 billion fine from the goverment after their lawsuit involving the accelator pedal. What do you think the goverment fine would be on gm's head after their 10 billion lawsuit? 10 billion is a lot of cheese in the first place. How much cash does gm have on hand as is? Would our own govt fine gm enough to sink them if they did not have the cash to pay it? Btw...They are a pathetic company.

[Bored of Pisteon]

One can question the timing of all of this, knowing full well most of these defective parts were installed under the old "GM" before bankruptcy; and you can also question the coincidental timing of how the government no longer has a majority stake in ownership of the new "GM".

 

One thing for sure in my opinion... If a class action lawsuit of this magnitude is presented, who's liable? And if the current GM has to pay out? Who pays?

 

I will say this though. GM will not survive another bankruptcy, and should not be given another life raft. (bailout) under any circumstances.

[blwnsmoke]

Figured I'd add a link for you

 

http://www.businessweek.com/news/2014-10-15/gm-sued-for-10-billion-over-losses-on-27-million-cars

 

 

General Motors Co. (GM) was hit with its biggest lawsuit so far over serial recalls, brought on behalf of drivers of 27 million vehicles seeking more than $10 billion in compensation for fallen car prices.

The would-be class action against GM seeks to represent owners who bought or leased a recalled car from July 2009 to July 2014 and still have it, or sold it after mid-February when the recalls started, or had an accident that destroyed it after that date. More than 20 million customers could join the suit, Steve Berman, one of the plaintiffs’ lawyers, said in an e-mail today.

Detroit-based GM spurred the price drops by hiding at least 60 serious defects in around 27 million vehicles sold in the U.S., according to the complaint filed yesterday in federal court in Manhattan against “New GM,” as the carmaker became known after its 2009 bankruptcy and government bailout.

“New GM repeatedly proclaimed that it was a company committed to innovation, safety and maintaining a strong brand,” according to the filing. “The value of all GM-branded vehicles has diminished as a result of the widespread publication of those defects and New GM’s corporate culture of ignoring and concealing safety defects.”

Hundreds of individual car-price complaints against GM were combined in two separate class actions, according to a Web post by Berman, of Hagens Berman Sobol Shapiro LLP.

 

 

The larger suit concerns cars made after the bankruptcy.

A smaller one, focused on ignition-switch faults in cars made before the bailout, may be curtailed by a bankruptcy judge’s ruling next year on whether older claims for accidents and economic losses are allowed. GM has asked the judge to rule that his earlier orders, which enabled the U.S. to rescue the stumbling company, bar most of the claims over old cars.

According to the suits, 2010 and 2011 Chevy Camaros lost $2,000 in value as a result of recalls. The price drop of the 2009 Pontiac Solstice is $2,900.

GM said in an e-mailed statement that it would “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.”

The number of fatalities tied to the ignition-switch defect has more than doubled from initial company estimates, based on the latest data from the automaker’s compensation program aimed at settling rather than fighting such suits.

The victims’ fund, run by lawyer Kenneth Feinberg, said this week that it approved 27 payouts as of Oct. 10 for cases of death. At least 151 other fatality claims are under review.

[catan70]

Uh oh....http://www.reuters.com/article/2014/11/20/us-general-motors-recall-arizona-iduskcn0j40ia20141120

 

Looks like arizona is the first state to sue gm now over their mess. The heads at gm have to be worried. Between the personal lawsuits, the fed lawsuit (I'm sure is coming), and now states jumping in. There's only so much pie to go around. Is this lawsuit probable? If az gets away with it I imagine others will jump in. What happens in gm's case if there's isn't sufficient funds to cover?

[RichardJensen]

The state attorneys general will pool resources and they're well aware that they can't take money that GM doesn't have.

 

I could see total legal costs, including fines imposed by the NHTSA exceeding $5B, and that's independent of other costs.

[Fgts]

GM would probably settled as mentioned before can't take money what you don't have plus I really don't see the AZ suit going far with lost value, airbags and seatbelts . Where's Toyota's lawsuit over SUA?, but It's a foreign company .

 

The problem really is we (U.S.) complain about foreign competition and jobs and commit financial suicide by doing stuff like this to our own companies, no im not letting GM off the hook but this needs a limit. I bet it's really over the bailout rather then the defects. Don't think for a moment Ford won't be subject to something like this down the line .

[AlRozzi]

Just give a proportionate equity share to each competing litigious interest and fix the General Madness.

[RichardJensen]

Where's Toyota's lawsuit over SUA?

 

Generally speaking, trial lawyers don't like suing companies that have out-of-country HQs, because of the difficulty of executing discovery.

 

However, when there's a big pile of money to be had, there will be lawsuits:

http://toyotaelsettlement.com/

(the total settlement exceeded $1B)

 

http://www.oilgelsettlement.com/