This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Hagens Berman: Consumers Sue G.M. Over Ignition Recall – Demand Statutory Penalty Of $350 Million, Other Damages

Hagens Berman, a consumer-rights law firm that recently settled the $1.6 billion case against Toyota, today announced it has filed a class-action lawsuit seeking statutory penalties and punitive damages against automaker General Motors (NYSE:GM) on behalf of owners of 1.4 million vehicles affected by a safety defect.

The safety defect at issue has been linked to 12 fatalities and more than 300 crashes. Hagens Berman continues its investigation into whether this defect exists in other models not yet recalled.

The suit seeks to recover from G.M. minimum statutory damages of $250 for each owner, which alone totals more than $350 million and could go higher, along with punitive damage for the willful nondisclosure of critical safety information.

The safety defect involves the car’s ignition, which according to consumers, can switch off while in operation, disabling airbags and other electrical features such as power steering and power brakes.

The 42-page complaint, filed March 19, 2014 in the U.S. District Court of California, Central District, states that G.M. failed to alert consumers of the known risks they faced driving the vehicles, despite promising it would honor the federal reporting requirement of safety risks for all General Motors cars including assets purchased from the 2009 bankruptcy.

“The highest duty for a car manufacturer is to act in the best interests of its customers when it comes to safety,” said Steve Berman, managing partner of Hagens Berman and the lead counsel of the recently settled Toyota litigation. “G.M.’s inaction – sitting mute while people died – rises to the level of criminal in my book. While civil in nature, we believe it is a step toward holding G.M. accountable for its inaction.”

The firm seeks to represent all individuals who owned or leased a G.M. vehicle affected by the recall including 2005-7 Chevrolet Cobalts and 2007 Pontiac G5 models, and last month extended the recall to include 2003-7 Saturn Ions, 2006-7 Chevrolet HHRs, 2006-7 Pontiac Solstice and 2007 Saturn Sky models.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs