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California district attorney sues GM over recalls

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California district attorney sues GM over recalls

Just as GM was revealing the details over its ignition switch recall victims fund, one of California’s district attorneys was also announcing a new lawsuit against the company.

The Californian district attorney called the lawsuit against the No.1 US automaker as a result of the onslaught of recalls by the company – which yesterday again linked more than 8 million vehicles to a defective ignition switch. The DA accused the company of concealing at least 35 vehicle safety defects, thus endangering the public safety.

The lawsuit was filed last week on Friday by Orange County District Attorney Tony Rackauckas, which at the time of the filling only had knowledge of the over 17 million cars recalled in the US alone by GM.

“We must encourage all businesses to be fair and live up to safety standards, and must not allow those engaging in unfair practices to punish those businesses that don’t cut corners by compromising safety,” Rackauckas said in a statement.

The district attorney accused the carmaker of consumer protection violations and unfair competition laws breaching, as it delayed to take action to address several issues – from the ignition switch defect to power steering flaws. The lawsuit is field to gain an order that would stop GM from continuing with the alleged unfair business practices, while also offering compensation to Californian clients and other civil penalties.

Via Reuters

by Aurel Niculescu (my Google+) - Tuesday, July 1st, 2014 - filed under General Motors, Industry, News. Image credit: .
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