GM Recall Lawsuits and Loss of Vehicle ValueAugust 20, 2014
With the world’s biggest automaker facing numerous GM recall lawsuits for millions of cars with dangerous and faulty ignition switches, another concern has arisen for the owners of the recalled vehicles: loss of resale value. U.S. Bankruptcy Judge Robert Gerber, the judge who presided over GM’s 2009 bankruptcy proceedings, will determine if owners of recalled vehicles will be eligible to receive compensation for the loss of value due to the ignition switch flaw and the loss of resale value.
Faulty Ignition Switches Lead to GM Recall Lawsuits
The GM recall lawsuits stem from a flaw in the ignition switch design in more than 2.6 million of the automaker’s best-selling cars. The ignition switch flaw cold cause the vehicle to lose power if the system were to be bumped or jarred. Reports from GM sated that 13 people are believed to have died from front-end crashes when the vehicles’ air bags failed to deploy, but other reports from thousands of other GM recall lawsuits claim the number of deaths attributed to the flaw are much higher.
GM Recall Lawsuits and Vehicle Owners
For those owners of the recalled values fortunate enough not to fall victim to a serious accident, the GM recall lawsuits still leave them with vehicles that they cannot drive and cannot resell. An announcement from the automaker stated that replacement ignition switches will be available later this year, but the news reports on the recalled vehicles may make them difficult to resell, even after the flaw is corrected.
New Round of GM Recall Lawsuits
While the company states that it will work with those plaintiffs filing GM recall lawsuits related to deaths or injuries, GM CEO Mary Barra stated that it will contest those filed for other reasons. The company faces nearly 100 economic-loss lawsuits in the multi-district litigation from vehicle owners who claim that they lost monetary value on the recalled vehicles. Judge Gerber is expected to rule by the end of the year if those GM recall lawsuits will be eligible for any of the proceeds set aside for affected vehicle owners.
Know Your Rights in a GM Recall Lawsuit
To find out how we can help you with a GM recall lawsuit, contact us today at 877-892-2797. Our friendly staff will ask a few questions about your case and connect you to a GM recall lawsuit attorney. You can also fill out the “Free Case Evaluation” form at the top of this page.