Appearing in a Manhattan federal court on Friday, U.S. District Judge Jesse Furman dismissed a number of claims against General Motors by customers seeking compensation for lost vehicle value they say resulted from a large number of recalls in 2014.
Furman rejected racketeering and several state-law claims and dismissed lawsuits from plaintiffs whose vehicles were not known to be defective at the time of sale. In this ruling, the judge maintained that pursuing damages on the basis that the 70 recalls diminished GM’s brand was “unprecedented and unsound.”
Total damages pursued in the class action lawsuits was said to amount to $10 billion.
Steve Berman, one of the lead lawyers for the plaintiffs, responded to the ruling by saying that an appeal was planned and that claims filed on behalf of millions of other GM customers would proceed.