Arizona has become the first state to sue General Motors. The lawsuit alleges that GM put Arizona drivers in danger by deliberately concealing information about vehicle defects “to avoid the cost of recall and replacement.”
GM has been hit with a number of lawsuits since it announced the recall of 2.6 million vehicles because of potential ignition switch problems that could cause the switch to slip out of position, disabling airbags, power steering, and power brakes.
Under Arizona’s Consumer Fraud act, civil penalties of up to $10,000 can be imposed. GM feels that it should not be faced with lawsuits on cars made before its bankruptcy proceedings. Arizona is seeking up to $3 billion in damages.
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