Auto Recalls Potential Examples of Corporate Negligence

By March 20, 2014Product Liability

Recent events have shed light on what may prove to be wrongful actions by major corporations leading to catastrophic accidents and the deaths of their customers.

First, General Motors issued a recall of some 1.6 million vehicles for defective ignition switches. A problem with the ignition switch in several GM cars in model years 2003 to 2007 led to the recall. The defective part caused some of the cars to stop running and has been linked to numerous fatal motor vehicle accidents.

Shortly after this news broke, Toyota reached a $1.2 billion settlement with the U.S. Justice Department to conclude a four-year investigation into a sudden-acceleration problem with its vehicles. Toyota recalled more than 10 million vehicles with this issue, but not before several drivers were killed.

The deaths are tragedies. But what makes them even worse is that, apparently, both automakers knew of these problems and did nothing to fix them until they were pressured by media scrutiny and legal action.

As part of the record settlement in the consumer fraud investigation, Toyota admitted deceiving its customers. GM eventually admitted that it was aware for many years of its defective ignition switches but did nothing to fix the problem. Not coincidentally, shortly after that admission the automaker issued a recall of 1.55 million other vehicles over potentially defective air bags.

Lawsuits have been filed against both companies. GRG is currently investigating potential legal claims by Missouri buyers of the GM vehicles recalled for defective ignition switches.

Unfortunately, corporate wrongdoing leading to consumer fraud or wrongful death is not limited to the auto industry. If you believe you or a loved one has been a victim of a defective product, an experienced attorney can review your legal options with you.