Robert J. Boumis  |  August 20, 2014

Category: Consumer News

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GM ignition switch recall class action lawsuitThe National Highway Traffic Safety Administration has announced yet another round of GM recalls. This comes as legal action continues to move forwards over GM ignition switch recall lawsuits.

The new issue involves fluid that can leak into the driver’s side door, where it could corrode and short out the circuit board. This could interfere with the door function — and potentially cause fires. This new recall involved roughly 185,000 GM vehicles, including Chevy Trailblazers, Buick Raniers, and Isuzu Ascenders.

The new GM recall includes the following makes and models (GM makes cars under several company names):

  • Buick Rainer (2006-2007)
  • Chevrolet Trailblazer (2006-2007)
  • Chevrolet Trailblazer EXT (2006)
  • GMC Envoy (2006-2007)
  • GMC Envoy XL (2006)
  • Isuzu Ascender (2006-2007)
  • Saab 9-7X (2005-2007)

In the case of the previous GM recall issue, various investigations by both the federal government and GM’s own investigators revealed various people at GM were aware of possibly-lethal defects in the company’s vehicles. It has been suggested this was not deliberately suppressed, but part of a larger “culture of incompetence,” described by investigators.

This early GM recall concerned problems with the circuitry of the ignition switch. Though at first blush, this might not sound particularly troubling, the fault could cause a car’s engine to shut down while driving. In heavy traffic or at high speeds, this could cause a dangerous accident. To make matters worse, this change of status not only powers down the engine, but also disables the air bags.

GM has admitted the defect was a contributor to some of the deaths involved in GM ignition switch lawsuits, and has settled some cases before they went to trial. However, the bulk of these cases are moving forwards in a type of group legal action called a multidistrict litigation, or MDL. MDLs are a coordination of similar individual lawsuits, a process designed to streamline the legal process. Since some of these lawsuits are wrongful death suits, the stakes are high.

In addition to GM ignition switch lawsuits regarding the liability of GM in accidents allegedly related to the ignition circuitry issues, GM is also facing a separate MDL by people who own GM vehicles who allege that the recalls have damaged their vehicles’ resale value. In these cases, GM has denied responsibility, saying that while company will face liability lawsuits for crashes, GM has been so radically restructured after bankruptcy settlements that it is functionally not the same company as the GM that built these cars.

GM has issued at least one other major recall in the last 12 months, possibly due to increased vigilance in light of the massive litigation against them.

The GM Ignition Switch Lawsuit is In Re: General Motors LLC Ignition Switch Litigation, MDL No. 2543, in the U.S. District Court for the Southern District of New York.

In general, GM ignition switch lawsuits are filed individually by each plaintiff and are not class actions.

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