Arizona AG Files $3B Lawsuit Against GM Over Ignition Recall
Going its own way, Arizona has filed a $3 billion lawsuit against General Motors over the February 2014 ignition switch recall.
The New York Times reports Arizona attorney general Thomas C. Horne threw down the lawsuit Wednesday, alleging the automaker defrauded the state’s consumers through advertising, public statements and its website. In so doing, Horne and Arizona are going it alone, breaking off from a group of 48 states pursuing a multi-state investigation into the recall; Arizona was on the executive committee of said investigation:
We’re proceeding with our own suit because it’s the best way to protect the citizens of Arizona. General Motors represented that it was taking care of the safety of its cars, and in fact there were serious defects that it did not disclose to the public for years.
The suit also asserts some of GM’s senior execs — including CEO Mary Barra — knew of the defects at the same time as those below their status. Arizona is fining the automaker $10,000 per vehicle found in violation of state statutes, totalling $3 billion for 300,000 units.
For its part, GM vows to fight the suit, proclaiming it “misrepresents the facts” behind the performance of its vehicles, as well as its commitment to the safety of its customer base.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon
Comments
Join the conversation
"What about the millions of people who own GM stock – do they deserve to be punished too?" Well sadly, that's part of being a shareholder, isn't it? If this was a sole proprietorship, we would have no problems filing a big lawsuit of the person in charge acted this way. Just because it is a publicly traded company doesn't mean it should be held accountable as well. Also, Arizona is stating it's a fine, not compensation.
Ridiculous! Talk about a FRIVOULOUS lawsuit. Instead of suing GM for POTENTIAL loss of value, the state of Arizona should look in the mirror and get rid of traffic camera, which cause REAL economic harm to residents are nothing but a gimmick to generate revenue. If GM has balls, they should reclocate their desert proving grounds OUT of A-hole-zona.
Political posturing, nothing more. GM will settle out of court for a non-disclosed amount while admitting no wrong doing. The non-disclosed amount will be a fraction of the $3 billion in the suit, and most of that money will go to fund the AG office for other efforts. Any aggrieved parties will get next to nothing, and anyone who has filed a claim through the GM compensation program shouldn't be able to 'double dip' in this action. You know it, I know it, and they know it. This is nothing but political posturing.
October 31st 2008 appearing on Good Morning America, Sen. John McCain (R-AZ) expressed support for the auto industry bailouts: Q: We’re finding out that there may be a possibility of some sort of bail-out or government assistance for the auto industry. Would that be something that you would support? MCCAIN: Well, we’ve already done that to $25 billion, and we’ve delayed getting them the money. I would do whatever I think needs to be done to help our automotive industry. We’ve got to make this transition to flex fuel, battery powered, hydrogen automobiles. And, obviously — and, also, I would provide tax credits for people who buy these new automobiles. We’ve got to keep this industry alive. There’s no doubt about that. Maybe in between trying to look who to bomb next, the senior senator from Arizona could reimburse the tax payers of Arizona. Or maybe not re-elect him? Too late you say?