Arizona becomes the first state to sue GM over 2014 recalls
General Motors just can’t catch a break. The American automaker is facing more legal trouble in the United States over the roughly 26.6 million vehicles that it recalled in 2014 alone, this time it’s the state of Arizona, according to Reuters, which alleges that the executives at the company were aware of the issues that causes the recalls but refrained from disclosing them.
This case makes Arizona the first state to sue General Motors over this year’s recalls, although others are currently working to build a case. Arizona’s lawsuit could force the automaker to fork over as much as $3 billion based on the state’s consumer penalty laws, which make companies responsible for up to $10,000 per violation, according to The Huffington Post.
“We’re proceeding with our own suit because it’s the best way to protect the citizens of Arizona,” said Attorney General Thomas C. Horne in an interview, as quoted by The New York Times. “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 emergence of the truth about New GM’s abysmal safety record and culture of deceit, and its failure to promptly remedy known defects, has greatly diminished the value of GM branded vehicles sold after the inception of New GM,” said Horne, as quoted by Bloomberg, calculating that prices for 2010 and 2011 Chevrolet Camaros have dropped $2,000 due to the recalls.
In response to the lawsuit, General Motors spokesperson Alan Adler said to Autoblog in an email: “We have reviewed the complaint filed by the State of Arizona. It mischaracterizes the facts, the performance of our vehicles and our work to ensure the safety of our customers. We intend to vigorously defend the case.”