Detroit: General Motors Co and its Chief Executive Mary Barra are being sued by an investor for failing to adequately address known defects in its cars that led to the recall of over 3.1 million vehicles, according to court documents.
The lawsuit filed by investor George Pio seeks unspecified damages from the carmaker claiming the recalls “triggered a sharp decline in the company’s share price, wiping out billions in shareholder value”. It also seeks class action status.
In the last two months, GM has recalled more than 3.1 million vehicles in the US and other markets. The actions started with last month’s recall of more than 1.6 million vehicles for faulty ignition switches linked to 12 deaths.
The company had said it first learned of the defect in 2001, before the cars went into production. The lawsuit filed in a federal court in Michigan claims that “GM’s illegal and immoral activities” during the period eroded the company’s reputation for safety and quality. Reuters
