Posted on 11/20/2014 9:54:01 AM PST by jazusamo
The attorney general of Arizona said on Wednesday that the state had filed suit against General Motors, claiming that the automaker had defrauded the state’s consumers of an estimated $3 billion.
The suit is the first major legal action against G.M. over its record number of recalls this year, most notable among them one for a defective ignition switch in 2.6 million small cars that was delayed for a decade.
The complaint was harsh and unsparing in its criticism of G.M., suggesting that the automaker intentionally misled consumers through its advertising, website and public statements, and that some of its top leaders were complicit in the alleged misdeeds.
It said “New G.M.,” the term used for the company that emerged from bankruptcy in 2009, “was not born innocent.”
“It is difficult to find a brand whose reputation has taken as great a beating as has the New G.M. brand starting in February 2014 when the first ignition-switch recall occurred,” the complaint said.
In filing suit, Arizona has broken from a group of 48 state attorneys general that has been pursuing a multistate investigation into G.M. for its handling of the ignition-switch defect. The state had been on the executive committee of that multistate inquiry, led by South Carolina and Ohio.
“We’re proceeding with our own suit because it’s the best way to protect the citizens of Arizona,” Attorney General Thomas C. Horne, a Republican, said in an interview. “General Motors represented that it was taking care of the safety of its cars, and in fact there were serious defects that it did not disclose to the public for years.”
(Excerpt) Read more at nytimes.com ...
GM needs another bailout.
This ignition lock issue is total BS.
The problem is caused by drivers using a very heavy key chain full of keys which puts extraordinary wear and tear on the ignition locking system
The fact that GM knew about the problem and re-engineered the switch in 2005 but didn’t put out a recall cost a number of lives, that’s not BS.
The GM UAW employees can get the Democrats to take money from me and give it to them, but they will never get another cent from me voluntarily. I will never buy another UAW assembled vehicle.
Government Motors ...................ObamaCare............what’s the difference? You die either way....................
I couldn’t agree more.
I can see consumers getting compensation for their loss but not a state.
Yep, way too many lawyers.
Attorney General Thomas C. Horne, got booted, and now he is playing games. I hate Gubmint Motors, but this is BS.
Yes it will be fun to watch how the state demonstrates its actual damages. You can't just declare without their consent that every state GM owner has been damaged and then keep the money for your self.
It would be one thing if the defective product caused significant damage to state roads or something but this is just nuts.
Exactly how does AZ have standing?
I agree...Didn’t know he got ousted, thanks.
I’ve no idea, check post 9.
Thanks, so it’s a tantrum.
It sure looks that way :)
If, by some miracle, AZ wins the case and is awarded $3B, what will the state do with the money? Will the residents, who own a GM car, get a piece of the pie?
Interesting you bring this point up because if GM filed bankruptcy, the legal course for creditor protection all companies must follow and not Emperor Obama's restructure plan, GM would be facing bankruptcy fraud.
According to the article AZ is suing for civil penalties, not restitution for consumers. I think this AZ AG is delusional.
Horne is a lunatic. Good on some things, but a loon.
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