GM Plaintiffs Adding Racketeering Claim to Lawsuits

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Plaintiffs who are suing General Motors over defective ignition switches have accused the company of working with a law firm and a claims-management company in order to conceal the defective ignition switches. More than 200 lawsuits have been consolidated into one case that is being litigated in a New York federal court. The case is asking for more than $10 billion in damages and is asking to include more than 20 million vehicle owners. The lawsuit claims that the defective ignition switches tarnished GM’s brand and caused the vehicles to lose as much as $4,000 in value. 

The lawsuit was recently amended to include claims that GM committed fraud and violated racketeering laws by covering up the ignition-switch defect. The complaint claims that GM, its law firm, and a claims management company knew about the ignition switch defect, but kept it private. A GM spokesman says that the amended complaint contains no new information, and the company looks forward to setting the record straight in court.

GM is facing a federal investigation, and has paid a $35 million fine because of its delay in issuing the recall. The company also set up an out-of-court compensation system, which so far has paid claims for 114 deaths and 229 injuries.

GM is only one of many companies that have hidden defects with its products rather than to issue a costly recall. GM’s failure to issue a recall has caused deaths and serious personal injuries that could have been easily avoided.

If you or a loved one has been injured by a defective product, call the Houston personal injury attorneys at Kennedy Hodges at 855-947-0707. You can also learn more about our firm by visiting our YouTube channel.

 

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