GM Owes $100M+ After Jury Finds it Hid Defect

It resulted in piston rings that were consuming too much oil.

General Motors emerged from the third quarter of 2022 in a fortunate position: while competitors like Ford, Honda, Nissan and Toyota all posted year-over-year sales declines, GM reported an increase – and not a small one.

The automaker revealed sales we up 24 percent in the quarter, compared to last year, and added that the bulk of its supply chain problems may be in the rearview mirror.

Unfortunately for GM, this solid start to the month was quickly met with some bad news.

Just one day after the company unveiled its 3rd quarter earnings, the law firm DiCello Levitt issued a press release revealing a massive judgment against the automaker.

According to the release, a trial verdict was handed down after a class action lawsuit alleged that GM concealed a defect in the engines in some of its SUVs and light trucks.

The allegations suggest that GM’s Generation IV Vortec 5300 LC9 engine featured a “defect in the engine’s piston rings that resulted in the vehicles consuming too much oil.” The lawsuit claims that GM was alerted “quickly” to the issue that the excess oil was infiltrating engine parts and causing premature breakdowns. The suit adds that GM offered ineffective solutions and design changes over several years before discontinuing the engine.

The jury in the case determined that GM violated consumer protection regulations in several states and, as such, awarded the automaker to pay $2,700 to the class action suit’s 38,000 plaintiffs – resulting in a judgment of $102.6 million.

Christopher Stombaugh, lead trial counsel in the case, thanked the jury for its “courage” adding it “did the right thing in holding GM responsible for its deceit and half-hearted efforts to address its problems.”

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