News

« Back to News List

June 19, 2014

General Motors Lawsuit: Motley Rice files class action on behalf of auto wholesaler for economic loss

Motley Rice and co-counsel have filed a class action on behalf of Bedford Auto Wholesale, Inc., as an individual and a class representative on behalf of all similarly situated persons and businesses regarding alleged financial losses stemming from GM’s recall of its vehicles with ignition switch defects, which have been reportedly linked to more than 50 crashes and at least 13 deaths. Other estimates are as high as 300 deaths. 

Plaintiffs allege that GM knew of the ignition switch defect for many years but chose not to report it and instead protect its profits and maximize sales, allowing unsuspecting vehicle owners to continue driving highly dangerous vehicles. 

The complaint alleges that GM violated several laws by engaging in unfair trade practices and by fraudulently concealing the ignition switch defects from consumers, owners, dealers, wholesalers and lessees of the defective vehicles. The Plaintiffs also allege GM should be held accountable for unjust enrichment, breach of implied warranty and fraudulent concealment. 

The complaint alleges that Bedford Auto Wholesale and other class members have been damaged financially by GM’s misrepresentations, concealment and non-disclosure of the ignition switch defects as they are now in ownership of highly dangerous vehicles with greatly diminished values. Additionally, dealers cannot sell these vehicles and are paying interest on loans taken out to acquire and/or hold the vehicles in inventory. 

The class action also names GM’s predecessor, General Motors Corporation (“Old GM”), and alleges it violated obligations and duties to consumers by designing and marketing vehicles with defective ignition switches and then failing to disclose that information even after it became aware that the defect was causing fatal accidents.

Read the full complaint.

If you were impacted by GM’s vehicle ignition switch defect recalls and are interested in joining the class for damages including considerable expense, financial loss and economic damages, or for more information, contact Motley Rice attorneys Jodi Westbrook Flowers or Kevin Dean by email or call +1 800.768.4026 . 

Learn more about Motley Rice’s cases involving GM vehicles with ignition defects.