The new lawsuit, which seeks class-action status, has been filed on behalf of owners who are poised to take a financial hit as their cars allegedly drop in value due to the debacle.
Attorneys are calling for $350 million in damages for the lead plaintiff, Saturn Ion owner Katie McConnell, and other members of the class.
Any lawsuits focusing on GM’s actions before its 2009 bankruptcy proceedings will face a tough battle on technical grounds, as the new GM is officially a separate entity from the “old GM” that went bust during the financial crisis. As such, the automaker is shielded from liabilities for incidents that occurred before the switch.
Attorneys in the class-action suit argue that the old GM knew about the faulty ignition switches as early as 2001, and therefore should be held liable due to “active concealment” during the bankruptcy negotiations.
“While civil in nature, we believe it is a step toward holding G.M. accountable for its inaction,” said filing attorney Steve Berman, in a statement published by Reuters.
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