The legal morass surrounding General Motors continues to get deeper despite this week’s announcement that it has established a special fund to compensate victims of crashes linked to a defective ignition switch.
In Orange County, in the heart of the intensely competitive Southern California new car market, the District Attorney’s office has brought a lawsuit against GM. The suit not only cites the defective ignition switch but also states GM has withheld information about nearly three dozen other defects. It also charges GM had engaged in unfair competition and false advertising in violation of California law when it failed to disclose those safety problems.
The lawsuit was filed just weeks after a separate class action was initiated by a Seattle law firm claiming to represent owners of GM products who feel those vehicles have lost value because of GM’s recall blitz.