General Motors Company (GM)’s Legal Troubles Amplified With $3 Billion Arizona State Lawsuit

GM

The legal woes of General Motors Company (NYSE:GM) are nowhere near their end as the Arizona State has filed a lawsuit against the automaker claiming damages in excess of $3 billion. The lawsuit accuses the automaker for concealing safety issues in its cars and defrauding the customers.

General Motors Company (NYSE:GM) has recalled over 2.6 million cars this year alone for faulty ignition switch and this lawsuit puts dupery charges over the company. This is the first major action from any of the States’ government considering the large number of recalls. According to the complaint, GM mislead its customers with its branding, advertising, and offers.

The complaint mentioned,

“It is difficult to find a brand whose reputation has taken as great a beating as has the New G.M. brand starting in February 2014 when the first ignition-switch recall occurred.”

In addition to it, Attorney General Thomas C. Horne said,

“We’re proceeding with our own suit because it’s the best way to protect the citizens of Arizona. General Motors represented that it was taking care of the safety of its cars, and in fact there were serious defects that it did not disclose to the public for years.”

GM

Some of the major aspects of the complaint include the compensation of $10,000 per violation considering the thousands of Arizonian customers affected by the recalls.

Earlier this year, General Motors Company (NYSE:GM) initiated a compensation program for the accidents and casualties caused by its faulty ignition switch. The program started accepting applications on August 1, 2014 and the last date for filing applications has been extended to January 31, 2015. As of now, the program has approved 32 death claims and 35 injury applications until last week.

General Motors Company (NYSE:GM) is facing multiple lawsuits for its faulty ignition switches and with Arizona State joining the plaintiff category, the situation is likely to worsen up for the automaker.

This article has been written by Prakash Pandey.

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