Earlier this summer, General Motors settled a yearslong class action lawsuit where plaintiffs alleged that GM’s Duramax diesel engines contained faulty fuel pumps.
Unfortunately for the automaker, the ink will barely dry on the Duramax agreement before the company will find itself in court once again.
A three judge panel has ruled that GM must face a class action lawsuit relating to an entirely different issue – its transmissions.
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Plaintiffs will be allowed to pursue a case that alleges GM knowingly sold defective transmissions between 2015 and 2019. Some 800,000 vehicles - including certain Cadillac, Chevy and GMC models - are implicated in the suit.
Drivers claim the vehicles would lurch in lower gears and shake or shudder at higher gears, even after repair attempts were made.
Further, the claim accuses GM of directing dealers to maintain this type of harsh shifting was normal.
According to Reuters, GM had been fighting back against the suit, saying many of the class members had never actually experienced these transmission problems, therefore they lacked the standing to sue. GM hoped to address the issue through arbitration instead.
A district judge disagreed with GM’s argument in 2023 and the latest decision, from a federal appeals court, said that simply “overpaying for allegedly defective vehicles was enough to establish standing” and that the case could be pursued.
Whether the outcome will benefit the buyers of these vehicles remains to be seen. The Drive recently pointed out that the August Duramax settlement consisted of $5,000 in repayment for each of 11 plaintiffs, reimbursement for out-of-pocket repairs, and $15 million split among attorneys.
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