Below is the first part of an article by Luke jacobi from benzinga.com. It reads…
Earlier this year Hagens Berman, the law firm that won a $1.6 billion class action suit against Toyota (NYSE: TM) for the company’s wave of 2009-2011 recalls, was appointed interim lead counsel of the class action lawsuit against General Motors (NYSE: GM).
Unless the court appoints another firm, Hagens Berman will lead the case.
In an exclusive interview with Benzinga, Hagens Berman partner Rob Carey discussed the value of a settlement. Hagens Berman is targeting General Motors for economic loss (i.e. lost resale value because of the recall) to its customers. The suit was filed for $10 billion of economic damages and the court could rule for an additional punitive award.
“It’s hard to value. Not because I think it’s [a] difficult equation or concept, but because it’s still growing,” said Carey. The Cobalt is a prime example. “The value has dropped one thousand dollars in one month on a five thousand dollar car and I think most of the data has just started coming to the surface right now.”
Carey went on to lay out how damaging the worst case scenario could be for General Motors. He explained that if evidence that the automaker systematically buried safety information on all vehicles comes to light, GM cars would be worthless because people would be afraid to drive them.