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GM ruling is good for FCA

by David Zatz on

GM had a rough 2014 in terms of recalls and bad publicity, leading a group of lawyers (or class action lawyers, depending on your perspective) to file suit against the company, using racketeering laws.  The premise was that the bad publicity and recalls had damaged their resale value to the tune of $10 billion in damages.


U.S. district judge Jesse Furman dismissed their claims from his Manhattan office on Friday.  The precedent may mean that any pending FCA litigation will be similarly dismissed.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304

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