GM Faces Class Action Over Faulty Transmissions
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GM Faces Significant Class Action Lawsuit
General Motors (NASDAQ: GM) has been ordered by a federal appeals court to face a class action lawsuit that alleges it violated consumer protection laws in numerous states. The claim focuses on the sale of several hundred thousand vehicles, including cars, trucks, and SUVs, which are purported to have faulty transmissions.
Overview of the Allegations
The class action claim revolves around Cadillac, Chevrolet, and GMC vehicles that are equipped with 8L45 or 8L90 eight-speed automatic transmissions, specifically the models produced between 2015 and 2019. Drivers have reported that these vehicles experience problematic shaking and shuddering in higher gears and hesitating or lurching in lower gears, difficulties which persist despite repair attempts.
Judicial Findings and Court Decisions
A ruling from the 6th U.S. Circuit Court of Appeals confirmed that a lower court has the ability to permit drivers to collectively sue over their grievances. The three-judge panel stated that the lower court had the discretion to allow such group litigation, seeing merit in the claims of overpayment for vehicles allegedly known to be defective.
GM's Response to the Class Action
In its defense, GM contended that a majority of the class members claiming to have experienced transmission issues did not actually encounter problems. They argued that this lack of experience should preclude those individuals from participating in the class suit. Moreover, GM emphasized that the differences in individual experiences among class members could complicate the justifications for a consolidated legal action.
Implications of the Lawsuit
The litigation targets approximately 800,000 vehicles, with about 514,000 classified into the certified class. Models encompassed by the lawsuit include the Cadillac CTS, CT6, and Escalade; the Chevrolet Camaro, Colorado, Corvette, and Silverado; along with the GMC Canyon, Sierra, and Yukon.
Next Steps in the Legal Process
Following the appellate ruling, the case has been returned to the U.S. District Judge, who had already certified the classes in earlier proceedings. Attorneys representing the drivers expressed optimism about holding GM accountable and have indicated their intention to bring the case before a jury.
Concluding Remarks
The court's ruling marks a significant moment for consumers affected by GM's transmission issues. The outcome of this case could potentially lead to substantial recoveries for the plaintiffs, demonstrating a commitment to consumer rights in the automotive industry. As the lawsuit progresses, further developments will be closely watched, especially regarding how GM chooses to respond to these allegations moving forward.
Frequently Asked Questions
What is the main issue in the GM class action lawsuit?
The primary allegation is that GM knowingly sold vehicles equipped with faulty transmissions, affecting the performance and safety of those cars.
How many vehicles are involved in the GM lawsuit?
Approximately 800,000 vehicles are implicated in the lawsuit, with around 514,000 included in the certified class.
What has GM stated regarding the allegations?
GM argued that most class members did not experience transmission issues, suggesting these individuals should not be part of the class action.
What are the potential implications for GM if they lose the case?
If the court rules against GM, it could lead to significant financial liability and potentially enforce changes in how the company addresses vehicle defects.
Who are the attorneys representing the plaintiffs?
The plaintiffs are represented by Cohen Milstein Sellers & Toll, a firm highly regarded for handling consumer protection cases.
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