Hagens Berman: Potential $10 Bln Class-action Lawsuit Filed Against GM

(RTTNews) - Law firm Hagens Berman Sobol Shapiro LLP said Wednesday that it has filed a potentially precedent-setting class-action lawsuit against General Motors Co. (GM), claiming that the largest U.S. automaker's troubled history, including more than 20 million recalled vehicles worldwide, has so impacted the GM brand that all GM car owners, not just those subject to the ignition switch recall, have suffered economic damage through loss of resale value, and deserve compensation.

The 71-page complaint, filed in the U.S. District Court for the Central District of California, covers vehicles sold after GM's bankruptcy proceedings and accuses the automaker of misrepresentation, concealment and non-disclosure of "piecemeal" safety defects, and in turn, responsibility for the decrease of value in model year GM vehicles sold between July 10, 2009 and April 1, 2014.

The complaint seeks damages for a class of consumers including anyone who owns or has owned or leased a new or used GM-branded vehicle sold between July 10, 2009 and April 1, 2014, or sold a vehicle during this time period at a diminished price on or after April 1, 2014, excluding those whose vehicles were recalled for an ignition switch defect. Damages are sought on the grounds that GM concealed facts about its safety defects to consumers and did so to falsely assure purchasers and lessors of GM's commitment to its brand promises, therefore leading many to purchase or lease vehicles without knowledge of the defects, according to the suit.

The class action is the first suit of the lawsuits filed against GM to seek compensation based on the automaker's damaged brand perception.

If certified, the class would represent as many as 15 million GM car owners and put GM's exposure at more than $10 billion, according to attorneys.

GM shares are currently trading at $36.05, down 31 cents.