Lawyers race to grab potential clients over recent GM recall

Article by Christian A., on March 20, 2014

Lawyers trying to cash on consumers affected by General Motors’ recall of 1.6 million cars are scrambling to find potential clients. Their methods include buying Google search terms, registering Internet domain names, disclosing investigations into GM's behavior, and turning to their Twitter and Facebook accounts to provide updates on the recall.

"This is a race to the courthouse," remarked Bryan Quigley, a senior vice president at the Institute for Legal Reform. As of writing, at least two lawsuits have been filed, both claiming that GM tried to hide its knowledge of ignition problems from the public. Law firms that represent plaintiffs usually receive a percentage of the money their clients recover.

In litigations against Toyota Motor Corp. over unintended acceleration issues, lawyers for plaintiffs received $200 million in fees and $27 million in expenses in a settlement valued at $1.6 billion. The settlement was approved by a federal judge in 2013. GM issued in February a recall of around 1.6 million cars due to a faulty ignition switch that could turn off the engine, disable its airbags and make steering difficult.

The issue has been linked to 12 deaths, GM said. The recall has resulted to government criminal and civil investigations and an internal probe by GM as well as possible Congressional hearings.

All probes are wondering why it took GM so long to address an issue that it first knew n problem it has said in 2001. GM has apologized for how it handled the recall, adding that taking care of customers was its top priority. The carmaker disclosed that it is authorizing dealers to provide loaner cars and a $500 cash allowance to affected owners.

If you liked the article, share on:

Comments

Recommended

Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 2017
Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
As soon as Toyota trademarked the names “LC F” and “Lexus LC F” at the European Union Intellectual Property Office, speculations have emerged that there could actually be a hardcore...
by - December 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries