Oh, lawyers. Don't ever change. That Washington State firm that filed a "potentially precedent-setting" lawsuit against General Motors has just had a few of its primary arguments shot full of holes in a new story from TheDetroitBureau.com.

As you'll recall, the $10-billion suit was filed by Hagens Berman Sobol Shapiro out of Seattle, and alleges that "GM's egregious and widely publicized conduct and the never-ending and piecemeal nature of GM's recalls has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did when the GM brand meant safety and success."

That'd be a fine argument, were it backed up with, you know, data or facts. Instead, as TDB pointed out, the residual values of GM vehicles have scarcely been impacted by the recalls. It spoke to Kelley Blue Book, the Black Book and ALG for information on sales and residual values, and found that, if anything, GM vehicles continue to do well. In fact, according to the Black Book, a six-year-old Chevrolet Cobalt, one of the most recalled vehicles in the ignition switch fiasco, actually saw its residual values increase in the past few months. Some analysts were less political. Scott Painter, the founder and CEO of TrueCar, for example, called the suit "opportunistic and despicable."

There's much more that's worth reading over at TheDetroitBureau.com. We'd strongly recommend you head over and take a look.


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  • 38 Comments
      Larry Litmanen
      • 6 Months Ago
      So lawyers who went to the best schools in the world know nothing but Brandon Turkus knows everything????????? Complete baloney. Let's compare the value of these Cobalts to other similar cars. USA is in a recession, many out there want to buy really old cars on the cheap. So could it be that other similar cars saw their residual value go up because of the demand and Cobals value went up as well BUT NOT AS MUCH as it should have because GM hid the recall? GM is a criminal organization, Al Queda, ISIS, GM, Bloods, Crips, DNC, UAW.............same thing.
        Avinash Machado
        • 6 Months Ago
        @Larry Litmanen
        Is trolling your full time job or your part time job?
          scott3
          • 6 Months Ago
          @Avinash Machado
          I really don't think this is a troll as they at some point show a little clarity. I am banking on mental illness.
        ChaosphereIX
        • 6 Months Ago
        @Larry Litmanen
        dude, just let it go... and your assertions have absolutely no facts. If you look at polling data from JD etc., or ask anyone in the business [like myself], you will find that Cobalts, etc. have not been affected ONE BIT by this recall with relation to their resale value. NOT ONE GOD DAMN BIT. you have no facts to back up your arguments, and in my line of work that means you have a baseless position and thus are not contributing constructively to the discussion. End.
        Patriot
        • 6 Months Ago
        @Larry Litmanen
        GM is a terrorist organization that sends out squads of heavily armed gunmen to kill innocent civilians? You are clearly an idiot Larry. Lets hope no drunk 16yr old brat kills your family by driving 69MPH through a 25MPH residential area and people give her a pass. You obviously give Amber a pass along with all the other drunks who died behind the wheel due to irresponsible behavior and just plain stupidity.
        ChaosphereIX
        • 6 Months Ago
        @Larry Litmanen
        wow you know Larry is a pro troll when all of a sudden anything speaking against him gets a massive influx of negative votes. You sir are a pro troll, and thus should be banned. In the meantime, we should all bow to your dictatorship of anti-GM bashing and support whomever you represent. Just let us know dude, i is really obvious
        richard
        • 6 Months Ago
        @Larry Litmanen
        Oh, Larry, quite the comedian.
      Jason Krumvieda
      • 6 Months Ago
      I got one better for you, I will never be part of a lawsuit because I will never own a GM POS, ever. Fool me twice....
        Patriot
        • 6 Months Ago
        @Jason Krumvieda
        But you will own a Hyundai/Kia, Toyota, Nissan, Benz etc? Sounds like you need to walk Jason. You and all the others like you have no problem overlooking all the recalls, deaths and plain embarrassment people who own imports must endure when GM is mentioned. I will put my 2LTZ Impala up against a Kia with cracking wheels any day of the week.
        Richard
        • 6 Months Ago
        @Jason Krumvieda
        What brand bicycle do you ride?
        mikemaj82
        • 6 Months Ago
        @Jason Krumvieda
        Yes and with all those kids forget about ever getting a Corvette.
      Revis Goodworth
      • 6 Months Ago
      No need for a lawsuit - if you are dumb enough to drive either a GM or a Total Recall Motors' product, then you deserve what you get!
      Eggmania
      • 6 Months Ago
      i know the first thing i was willing to do when i learned GM cars were deathtraps was pay marginally more for a used one... i get they need to mitigate liability out of greed. but they really aren't doing much to win back confidence. and making this argument is counterproductive.
      Renaurd
      • 6 Months Ago
      Wambulance chasers.
      bootsnchaps60
      • 6 Months Ago
      I likely wouldn't buy the recalled/affect cars because I don't and didn't (when new) like them. The fleet Cobalt and HHR I drove had uncomfortable seats and the HHR had insignificant cargo area and a low roof. The Ion had a center pod instrument cluster I didn't like. Most of the small models were too low to the ground. The Vibe had obstructed rear view and was too low. New GM makes nothing I want at the moment. If value has been lost it may simply be that there are better choices in new and used vehicles that are more fuel efficient and content rich-Hyundai/Kia comes to mind.
      Bruce Lee
      • 6 Months Ago
      Where was this article when Toyota got sued for the same thing autoblog? You guys don't even play pretend at journalistic integrity with the level of GM apologism.
        scott3
        • 6 Months Ago
        @Bruce Lee
        Good point Brandon. Where are these stories on all the other cars that have suffered major recalls? Cobalt prices are not different today than ever. The Cheap plastic interiors of 14 years ago hurt resale more than anything but even then the prices are still good. The HHR is still doing well on the resale markets as it has nearly stopped losing resale value and in the right models grown. The SS model has only increased in value as well as the LT2 models. Even the base left over fleet LS models are still going for nearly $9K in most areas and they were going for that 4 years ago. I have a bunch of guys at work who bought new Hyundai's a few years back because they were cheap. It seemed like good idea at the time but backfired. They ended up with a lot of issues by 70K miles and dumped them for low mileage HHR models. They all could not be happier as they have not had any mechanical issues what so ever and great MPG. At last count all 5 are very happy with their trade. Note these are car guys in the performance field so they know cars.
          Trevor_k
          • 6 Months Ago
          @scott3
          Because nothing screams "I know performance" like buying an HHR. Every time I see an HHR SS they try to race me in their facelifted pt cruiser
      ammca66564
      • 6 Months Ago
      "Potentially precedent setting" also means "we don't have a leg to stand on."
        bootsnchaps60
        • 6 Months Ago
        @ammca66564
        But it makes for good commercials and we might make a few bucks on the clients, who will get very little after we're done.
      J W
      • 6 Months Ago
      Where's Larry Litmanen to tell us this just isn't possible? Told ya.
        Larry Litmanen
        • 6 Months Ago
        @J W
        I already explained it all to you.
          J W
          • 6 Months Ago
          @Larry Litmanen
          I love it, I have facts, and you argue with what you believe should be happening. Keep GM hating.
          ChaosphereIX
          • 6 Months Ago
          @Larry Litmanen
          wouldn't be a GM thread if Larry wasn't here trolling... dude...just let it go.
          Patriot
          • 6 Months Ago
          @Larry Litmanen
          I think I missed the intelligent response you posted. Can you please post your intelligent response again so we can all be schooled by your response.
      jz78817
      • 6 Months Ago
      I think the fact that this suit was initiated *by* a law firm is proof enough it's bunk. There *are* valid class-action lawsuits, but those have actual plaintiffs who claim to have suffered damages. Does this firm actually have any named plaintiffs that aren't already on their letterhead?
      scott3
      • 6 Months Ago
      These deals come along all the time and to all automakers. This is one of the reasons we need tort reform in this country as these law suits are what you and I end up paying for in higher prices. Law firms get these and take them to court to represent people they have never even met in hopes of a settlement where the owner of the vehicle gets a never used coupon for a discount on a over priced key chain while the law firm takes the majority of the money most time in the multi millions for representing their so called client. Many times the companies go straight for a settlement as while they may win the case it would cost them more to defend themselves and never get the cost back from the law firm pressing the case. It is a totally unfair fight here and for the most part it is cooperate extortion. Anyone here who thought the value dropped on a Cobalt or Ion because of the recalls needs to have their head examined. The sad part is legal cases like this are costing us in all parts of our lives. It is time that we force those who take these flimsy cases to court in hopes of a settlement have to cover all court cost if they fail to win a victory in court. If the case is good enough to win then take to court if not then stay home. Most of these cases are never expected to win and the hope is they can just settle.
      billy_sims33
      • 6 Months Ago
      Any lawsuits relating to the now bankrupt General Motors actions or products will not affect the post bankruptcy New General Motors.
        bootsnchaps60
        • 6 Months Ago
        @billy_sims33
        I think legally you're correct but I think ethically New GM will be hard pressed to avoid a PR disaster and make some settlements with the accident victim families at the least.
        Tariff The Imports
        • 6 Months Ago
        @billy_sims33
        I guess you've missed where GM is under investigation for bankruptcy fraud for concealing this known to GM faulty and deadly ignition switch during the bankruptcy.
          Patriot
          • 6 Months Ago
          @Tariff The Imports
          Under investigation only due to the do nothing Congress now grandstanding to gain votes to save their do nothing asses. Glad to see you caught that and actually took the time to make a post with this as the reason. Not to mention the switch is/was only deadly due to stupid people and their inability to be responsible in their actions and investing the time and effort to learn how to actually drive and CONTROL a vehicle. Even if said vehicle was to shut off driving down the road. Since you are so smart you are aware this can and does happen every day for all kinds of reasons. Who are they blaming for these daily incidents that have nothing to do with GM? Who will write these idiots a check for the owner of the car not replacing a part they knew was going bad but ignored the safety implications potentially causing an accident?
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