Cohen Milstein's Leopold Appointed Lead Counsel in General Motors Class Action
Litigator Theodore J. Leopold is helping to represent a national class in legal action against the automotive company. An amended complaint filed in the U.S. District Court for the Eastern District of Michigan on Monday alleges GM was aware several vehicles manufactured between 2015 and 2019 contained defective eight-speed automatic transmissions and did nothing to warn customers.
October 02, 2019 at 03:21 PM
4 minute read
The original version of this story was published on Daily Business Review
A South Florida law partner has been named lead counsel in a nationwide class action against General Motors LLC.
Cohen Milstein partner Theodore J. Leopold was appointed to the position by U.S. District Judge David M. Larson. The Palm Beach Gardens-based attorney is part of the legal team representing plaintiffs from more than 30 states in a putative consumer class action against GM in the U.S. District Court for the Eastern District of Michigan.
An amended complaint filed Monday consolidated previous suits against GM and contended the automotive company knowingly concealed a defect in its vehicles from customers. According to the suit, two faulty models of eight-speed automatic transmissions have caused widespread problems for GM vehicle owners in recent years. The plaintiffs allege vehicles manufactured by the defendant between 2015 and 2019 with the GM 8L90 or 8L45 transmissions suffer from a shared problem, which causes the vehicles to jerk and sputter.
"The class vehicles were sold with a defective 8L90 or 8L45 transmissions that, among other things, slip, buck, kick, jerk and harshly engage, suffer abnormal internal wear, sudden acceleration, delay in downshifts, delayed acceleration, difficulty stopping the vehicle, and eventually require replacement of the transmission or its components," the complaint said. "This defect, which manifests itself within the limited warranty period or shortly after the limited warranty period expires, can cause unsafe conditions in the Class Vehicles, including but not limited vehicles suddenly lurching forward, sudden loss of forward propulsion, and significant delays in acceleration."
The suit argues because the movements described affect a driver's ability to control their car's speed, acceleration, and deceleration, the problems associated with the transmissions pose a safety hazard to users.
Read the complaint:
A defense attorney for GM, Grant A. Newman with Michigan law firm Bush Seyferth, said the company's legal counsel was not authorized to speak on the case.
GM's manager for news relations on legal and corporate issues, David Caldwell, declined to comment on the amended complaint, beyond calling the filing "another step for an existing issue."
Caldwell said customers concerned about their GM vehicles should visit their local dealerships to address any issues.
Meanwhile, the complaint filed Monday lists 61 plaintiffs and proposes a class that comprises U.S. residents who leased or purchased new and used vehicles containing the alleged defect. There are 104 individualized charges comporting to the respective consumer protection laws for the 32 states in the suit, as well as claims of breach of warranty, unjust enrichment and fraudulent omission on behalf of the nationwide class.
"GM failed to disclose the transmission defect to plaintiff and class members through its advertising," the suit said. "On information and belief, owners have complained of dangerous driving conditions and near-accidents because of the transmission defect. However, GM continues to sell the dangerously defective vehicles to consumers."
Leopold told the Daily Business Review the "panoply of different issues" described in the complaint is supported by ample evidence, including extensive testimonies posted online by GM customers.
"Every time the vehicles are brought in for repairs, adjustments etc., the problems never go away," the attorney said. "None of the fixes GM tried to do ever worked, and the problems kept persisting."
Leopold added, "There was an accumulation of people around the country. It took a few years but it's now sort of a snowball effect."
The plaintiffs are seeking damages for overpaying for the purportedly defective vehicles, as well as losses on diminished resale value and repair costs. Leopold said he anticipates GM will file a motion to dismiss the case, and the plaintiffs in turn intend to respond accordingly.
Leopold is joined on the case by fellow Cohen Milstein attorney Douglas James McNamara, as well as litigators from Philadelphia firm Berger Montague and the Miller Law Firm in Michigan.
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