It’s not yet clear if a new class-action lawsuit against General Motors Co. will impact the car company’s overall loan valuations, including those loans that have been securitized in the capital markets.
A California consumer filed the suit today on behalf of all similarly impacted consumers, saying the General Motors Company should compensate millions of automobile owners for lost resale values after GM allegedly failed to disclose — and indeed, concealed — at least 35 separate defects in GM cars.
The complaint was filed in US District Court Central District of California. Anna Andrews, individually and on behalf of others similarly situated, was named as plaintiff.
The suit claims that GM’s intentional actions have economically harmed millions of owners of GM brands through diminished resale value, among other damages.
Specifically, the suit alleges that models such as the 2010 Chevy Camaro lost as much as $2,200; the 2011 Saturn Astra lost $1,600; and the 2011 Pontiac GTO lost $1,300 of its value due to recalls, according to the complaint.
The class action is the first of the lawsuits filed against GM to seek compensation based on the automaker’s damaged brand perception. If certified, the suit would represent as many as 15 million GM car owners and put GM’s exposure at more than $10 billion, according to the attorneys.
“GM came out of bankruptcy making claims that the company would produce high-quality, safe vehicles, a branding position that served GM well, and that consumers relied upon,” said Steve Berman, managing partner of Hagens Berman in a release.
Berman said the economic reality is that all GM owners are bearing the costs of GM’s actions.