Arizona Sues GM for Ignition-Switch Fraud

Arizona Sues GM for Ignition-Switch Fraud

Posted By Golomb & Honik || 21-Dec-2014

Arizona Attorney General Tom Horne has filed a complaint on behalf of the residents of Arizona which would make it the first state to join the group of consumers who are already suing General Motors. The state is suing GM over faulty ignition switches, claiming the auto manufacturer misinformed the public about the safety of its vehicles, swindling them of $3 billion.

For violation of the consumer-fraud law, Horne is requesting civil penalties amounting to $10,000 paid for each of the hundreds of thousands of GM automobiles sold in Arizona. His complaint falls on the heels of a similar one filed by Orange County, California in the interest of its residents, and is just one of over 150 suits GM has been plagued with thus far. Although they have not sued yet, a minimum of nine additional state attorneys general have collaborated to investigate GM's behavior.

The term "New GM" was coined after the company's restructuring in 2009 following a government bailout. In order to navigate around one judge's ban on holding "New GM" accountable for mistakes made by "Old GM", Horne is targeting alleged knowledge of defects in his complaint. Defects that "New GM" had knowledge of and, Horne claims, violated state consumer-fraud laws and cost Arizona car buyers hundreds of thousands of dollars in excessive automobile value depreciation.

Horne's complaint, however, is similar to allegations brought by consumers in Manhattan Federal Court and may very well be joined with those complaints despite his intent to keep his in Arizona. GM is currently petitioning to have the Orange County complaint moved to Manhattan as well.

General Motors Recalls

In the U.S. alone, GM has already recalled more cars this year than it has sold in the five years since the restructuring of the company after filing bankruptcy, and expects to pay upwards of $1.7 billion on repairs and loaner cars to deal with the situation.

The automaker recalled 2.6 million of its compact sedan, the Chevrolet Cobalt after it manufactured the vehicle for over a decade with knowledge of a faulty ignition switch. At least 13 deaths have been attributed to the faulty switch which can easily be turned off while the car is on the road, disabling power steering and safety features such as airbags.

In May 2014, GM recalled 218,000 subcompact cars sold as the Chevy Optra here in the U.S. A daytime running lamp was to blame for overheating and causing an unspecified number of vehicle fires.

Worldwide, GM has recalled 15.8 million vehicles in 2014.

National Defective Product Lawyers

If you or someone you love has suffered injuries or damages due to a defective GM product, you may be able to file a lawsuit. GM owners across the country are filing lawsuits in class action cases. To learn more about your legal options or to schedule a free consultation call the Philadelphia defective product lawyers at Golomb & Honik today at 1-800-355-3300 or 1-215-985-9177 or fill out our confidential Contact Form.

The national product liability lawyers at Golomb & Honik have successfully represented individuals in Philadelphia, Pennsylvania, New Jersey, and throughout the United States.

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