General Motors has one more recall-related lawsuit to add to its growing stack, but this time it isn't about the company's ignition switch fiasco. The latest case claims owners lost value on vehicles dating back to 2009, including those that the automaker never recalled. The law firm filing the suit thinks it could affect over 15 million vehicles in the US and be worth over $10 billion.

Law firm Hagens Berman Sobol Shapiro filed the case against GM in the Central District of California on June 18. The attorneys hope to get class-action status to cover potentially any owner of the company's vehicles made between July 10, 2009, and April 1, 2014. The lawsuit alleges that the continual recalls from the automaker this year "has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did," cites Reuters, and claims that the business put profits ahead of safety to sell sold sub-standard models to consumers.

GM was already facing about $10 billion in lawsuits related to just the ignition switch recall, but so far, the automaker has vehemently fought back against allegations of lost resale value to its vehicles. In one recent example, Kenneth Feinberg, who is running the company's compensation fund, responded that he had no intention of negotiating with these claims, and he asked to judge to throw out the case. However, with lawyers apparently smelling blood in the water, it's hard to imagine that keeping them at bay.


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  • 58 Comments
      orchestral.whips
      • 6 Months Ago
      So this $10 billion if paid out will definitely add a nice boost to our country's gross national product, right? Just like Pelosi saying unemployment benefits are the best thing we can do to help the economy! (cue the "I don't want to live on this planet any more" meme).
      marv.shocker
      • 6 Months Ago
      I didn't know GM cars HAD any resale value...
      Dom Enic
      • 6 Months Ago
      Those are just lawyers wanting more money.. nobody profits more from a class action lawsuit than the firms that start them!
      AronD
      • 6 Months Ago
      As a professional appraiser, I can tell you for a fact that a recall has NEVER affected the value of any car I have appraised, it's a fixable issue. This is a money grab . Honestly how much of anything could effect the value of a Saturn Ion.
        ChaosphereIX
        • 6 Months Ago
        @AronD
        exactly. Worthless - recall issues = still worthless.
        J W
        • 6 Months Ago
        @AronD
        I stated that below, our wholesale evaluator (dealership I work for) said the values haven't changed.
      omgcool
      • 6 Months Ago
      Since when are people entitled to expectations of resale value? Worthless blood-******* idiots (class-action attorneys and participants).
        jay4e
        • 6 Months Ago
        @omgcool
        generally I would agree but in the case of a lease it may have merrit. particularly in the case of large volume corporate lease or something similar. though likely the one loosing the most money there is gm financial....
      Larry Litmanen
      • 6 Months Ago
      These have merits. No matter the resale price of the car because of GMs lies the resale price is even lower, so the buyer suffered damage. This applies to any product really, if there's a safely issue resale value will go down. Now if it was an honest mistake and GM didn't know anything about it that's one thing, but GM KNEW and hid and lied and saw people die...............let alone saw resale values go down.\ But in the end it all evens out, GM screws the buyer and buyer loses money for being an idiot for buying a GM car in the first place.
      OptimusPrimeRib
      • 6 Months Ago
      Yay, a class action lawsuit. The lawyers will get billions while each person will probably get $8.49.
        churchmotor
        • 6 Months Ago
        @OptimusPrimeRib
        I thought only the UAW was allowed to extort money like that.
        ChrisH
        • 6 Months Ago
        @OptimusPrimeRib
        No, they will get a discount towards a NEW GM product. Kind of how like my recent dryer safety recall by Electrolux is working. I get this notice about how dangerous my dryer is and on and on and on only to find out the settlement is 10% or 20% off MSRP from the manufacturers own website to buy a replacement. Really. checkout dryer settlement dot com if you don't believe it
      b.rn
      • 6 Months Ago
      I didn't know you could sue over a "potential" loss. Seems more like some lawyers are hoping GM will settle to avoid the bad press.
      aatbloke1967
      • 6 Months Ago
      This article says more about lawyers than it does GM. It'll cost GM some serious money, the recipients will receive an average of $3 for losses on their Cobalts - which is commensurate with each vehicle's worth - while the only winners will be the lawyers themselves. Infantile.
        Mondrell
        • 6 Months Ago
        @aatbloke1967
        Shush. Your logic is getting in the way of a 'power to the people!' moment.
        codemasterflex
        • 6 Months Ago
        @aatbloke1967
        I'm not a mathematician, but even if all 15million people were to take even shares of the $10billion... beep boop beep boop that equals $666.66/owner. I'm sure each owner will lose more than that based on the lack of interest.
      SethG
      • 6 Months Ago
      It is one thing to expect a manufacturer to make good on any shortfalls when it comes to safety, fuel efficiency, performance or any other "promise" made to the consumer. But since when is a manufacturer responsible for the resale value of its products?
        Larry Litmanen
        • 6 Months Ago
        @SethG
        When manufacturer KNOWS that resale value will go down if public will discover a yet unknown and hidden defect.
      BipDBo
      • 6 Months Ago
      Granted, you expect your car not to kill you, but if you didn't want your car to loose value because it's nameplate is associated with crap, then you should not have bought from GM.
      Lachmund
      • 6 Months Ago
      Ridiculous...why is **** like this even possible in the U.S.?
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