GM Recall Devalues All GM Vehicles, California Class Action Alleges

When it rains, it pours for GM.  Of course, if you’re a reader of a products liability blog, then you’re certainly already familiar with the myriad difficulties facing GM in various courts across the country these days. A recent class action suit filed in California alleges that GM’s actions in handling the alleged ignition switch defect have resulted in a devaluation of all GM cars, which will cost GM customers when it comes time to resell their vehicles.  Surely you saw this one coming, right? The named plaintiff in the suit is Anna Andrews, and the firm that filed the suit on her behalf is Hagens Berman Sobol Shapiro, LLP.

The lawsuit purports to seek at least $10 billion, which is apparently over twice GM’s net earnings for 2013.  It will be interesting to see how this suit plays out.  We at Abnormal Use see this as a slippery slope in that it could lead to a class action suit by owners of a product any time a brand receives negative publicity, finds itself subject to a recall, or otherwise makes headlines relating to a defect. Only time will tell.

(Hat Tip: Law360).

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