NEW YORK (TheStreet) -- General Motors Co. (GM) is being sued by the State of Arizona for $3 billion, as the state is claiming the car maker defrauded its consumers in regards to the 2.6 million small cars that were recalled, after a decade long delay, due to a faulty ignition switch, the New York Times reports.
The complaint against General Motors accuses the company of intentionally misleading its customers through the use of advertising, website, and public statements, and alleges that some of the company's leaders were complicit in these actions, the Times added.
Arizona announced the filing of the suit on Wednesday, breaking away from a group of 48 state attorneys general that have been involved in a multistate investigation into General Motors, regarding its handling of the ignition switch issues, the Times noted.
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The complaint gives calculations into losses suffered by owners of these vehicles, and disputes the company's claim that some of the defects were only known to lower level engineers and not top level officials within the company, the Times said.
A General Motors spokesperson told the Times that the company "has not yet had a chance to read and assess the complaint."
Shares of General Motors are lower by 0.50% to $31.99 at the start of trading on Thursday.