GM Faces Class Action Lawsuit Over Faulty Transmissions
General Motors (GM) has been ordered by a federal appeals court to face a class action lawsuit accusing the company of violating laws in 26 U.S. states. The lawsuit alleges that GM knowingly sold several hundred thousand cars, trucks, and SUVs with faulty transmissions. The 6th U.S. Circuit Court of Appeals ruled that a lower court judge had the discretion to allow drivers to sue in groups over Cadillac, Chevrolet, and GMC vehicles equipped with 8L45 or 8L90 eight-speed automatic transmissions, sold between 2015 and 2019.
Drivers who filed the lawsuit claimed that these vehicles exhibit shuddering and shaking in higher gears, as well as hesitation and lurching in lower gears, even after repair attempts. They also accused GM of instructing dealers to provide assurance that these harsh shifts were “normal.” The appeals court’s decision was issued by a three-judge panel based in Cincinnati.
Class actions are advantageous for plaintiffs as they allow for greater recoveries at lower costs compared to individual lawsuits. The GM litigation covers approximately 800,000 vehicles, including 514,000 in the certified classes. The affected models include the Cadillac CTS, CT6, and Escalade; Chevrolet Camaro, Colorado, Corvette, and Silverado; and GMC Canyon, Sierra, and Yukon, among others.
GM had opposed class certification, arguing that most class members never experienced any problems and thus lacked standing to sue. Additionally, the company claimed that there were too many differences among class members to justify group lawsuits. However, Circuit Judge Karen Nelson Moore disagreed, stating that overpaying for allegedly defective vehicles alone was sufficient to establish standing. She also emphasized that the individual experiences of the plaintiffs were irrelevant to determining whether GM concealed known defects and if that information would have been material to buyers.
GM also contended that many potential claims should be handled through arbitration, but the court rejected this argument. The case has been returned to U.S. District Judge David Lawson in Detroit, who certified the classes in March 2023. Ted Leopold, a partner representing the drivers, stated that they are eager to hold GM accountable before a Michigan jury.
In conclusion, General Motors is now facing a significant class action lawsuit over its alleged violation of laws in 26 U.S. states by selling vehicles with faulty transmissions. The company’s claim that most class members did not experience any issues and the argument that there were too many differences among class members were dismissed by the appeals court. The case has been referred back to the lower court, and the plaintiffs’ legal representation expressed their enthusiasm for the opportunity to present the case before a jury in Michigan.