NEW YORK (TheStreet) -- General Motors Co. (GM) has been served with a $10 billion lawsuit, filed by the national consumer rights law firm Hagens Berman Sobol Shapiro, claiming the company owes millions, possibly billions, of dollars to car and truck owners for lost resale value, Reuters reports.
The complaint was filed today with the federal court in Riverside, CA and suggests GM damaged the resale value of late model cars by failing to report defective ignition switches resulting in the recall of over 20 million cars in 2014.
The law firm claims the company's actions resulted in the vehicles losing $500 to $2,600 in resale value, and said the case could potentially exceed $10 billion.
The lawsuit is the first against GM to seek restitution to car and truck owners, not just those whose cars were recalled, for damage to its brand and reputation, Reuters added.
Shares of GM are lower -0.61% to $36.14
Separatly, TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: