Arizona AG Files $3B Lawsuit Against GM Over Ignition Recall

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.

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  • Scrubnick Scrubnick on Nov 21, 2014

    "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.

  • TomLU86 TomLU86 on Nov 21, 2014

    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.

  • APaGttH APaGttH on Nov 21, 2014

    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.

    • See 2 previous
    • Highdesertcat Highdesertcat on Nov 22, 2014

      brn, these are troubling times in the kingdom. As a political Independent I have no allegiance to either the Democrats or the Republicans since I find ways around both their agendas daily to achieve my own goals. About the two wrongs not making a right, well, in the real world we have seen how people scheme and plot in order to get what they want. It really is all about "Do Unto Others BEFORE They Do Unto You!" Jonathan Gruber, anyone? The AZ lawsuit against GM is no different. How about Sheriff Joe Arpaio's lawsuit re immigration, eh? Sure to get the attention of the illegal aliens in AZ and drive them into California and other Blue States. People in Red State AZ think differently than the sissyfied metrosexuals of the Liberal Democrat Greenweenie East and West Coasts. My guess would be that AZ will get some money from GM and this suit will never get to trial. Just like suing Big Tobacco, this, too, was a smooth move and easy pickins'. More states to follow. You Betcha! GM's decades-long track record of cranking out unsafe and ill-developed vehicles will stand on its own merits and support a quiet settlement.

  • ExPatBrit ExPatBrit on Nov 22, 2014

    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?

    • Highdesertcat Highdesertcat on Nov 22, 2014

      ExPatBrit, John McCain will stay in the job for life and die in office. The man is a legend in his own time in AZ. If no one else, the beer drinkers of AZ will all vote for him, and those are a clear majority in hot, dry, dusty AZ.

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