General Motors now faces a class-action lawsuit, raising questions about the reliability of its transmissions and sparking concerns among thousands of car owners.
At a Glance
- GM faces a class action lawsuit for allegedly selling vehicles with defective transmissions
- The 6th U.S. Circuit Court of Appeals ruled that drivers from 26 states can sue GM in groups
- Affected vehicles include models with 8L45 or 8L90 eight-speed automatic transmissions from 2015-2019
- Approximately 800,000 vehicles are involved, with 514,000 in the certified classes
Federal Judge Approves Lawsuit Against GM
General Motors must face a class-action lawsuit after a federal judge gave the green light for the case. Plaintiffs allege that defective transmissions in Cadillac, Chevrolet, and GMC vehicles have resulted in sudden jerking, hesitation, and excessive shuddering, impairing the overall safety and performance of the vehicles. The ruling underscores the legitimacy of the plaintiffs’ grievances and brings the automaker under substantial scrutiny.
The 6th U.S. Circuit Court of Appeals decided that drivers from 26 states could collectively sue GM. This includes owners of vehicles equipped with 8L45 or 8L90 eight-speed automatic transmissions from model years 2015 to 2019. The vehicles in question experience shuddering, shaking in higher gears, and hesitation and lurching in lower gears, even after repairs.
GM Ordered To Face Class Action Lawsuit Over Faulty 8-Speed Transmissions https://t.co/Yh6IIPgu6E
— GM Authority (@GMauthority) August 30, 2024
Details of the Allegations
The lawsuit involves Cadillac CTS, CT6, Escalade; Chevrolet Camaro, Colorado, Corvette, Silverado; and GMC Canyon, Sierra, and Yukon. The problems affect around 800,000 vehicles, with 514,000 included in the certified classes. Consumers argue that GM knowingly sold these defective vehicles and instructed dealerships to assure customers that these issues were “normal.”
“We look forward to holding GM accountable before a Michigan jury,” said Ted Leopold, a partner at Cohen Milstein Sellers & Toll.
GM attempted to challenge class certification, arguing that many class members had not experienced problems and thereby did not have the standing to sue. Circuit Judge Karen Nelson Moore dismissed these arguments, stating that overpaying for defective vehicles sufficed for standing. The appeals court also rejected GM’s effort to move claims to arbitration.
Federal appeals court orders General Motors to face class action for allegedly selling vehicles with faulty transmissions in 26 states. https://t.co/wFlPn3EJzm
— Automotive News (@Automotive_News) August 30, 2024
Implications of the Ruling
The case has now been remanded to U.S. District Judge David Lawson in Detroit, who certified the classes in March 2023. Ted Leopold, representing the drivers, expressed optimism regarding holding GM accountable before a jury. The lawsuit, originally filed in 2018, claims that GM violated laws across 26 states by knowingly selling faulty cars, trucks, and SUVs.
“GM has been accused of knowing about faulty transmissions and instructing dealers to downplay the issue to customers,” said Stewart Burnett.
Class actions can lead to greater recoveries at lower costs compared to individual lawsuits. The appeals court emphasized that it was irrelevant how extensively each plaintiff experienced transmission issues, as long as GM concealed known defects. This ruling marks a significant step in potentially holding a major automaker accountable for alleged widespread defects.
