We were all rightfully a little upset when we found out that the maximum fine from the federal government for GM over the recall scandal was a piddly $35 Million. That's less than a day's revenue for the company. The real hurt is coming from 79 of GM's angry, angry customers who are throwing a grand total of $10 Billion in lawsuits at the company.
That would hurt.
In response to this whole mess, GM is reworking its entire legal department. The company has also asked the Department of Justice to invalidate any claims of economic loss (depreciation due to reputation) as these would be levied at pre-bankruptcy "Old GM," but the opposition is claiming that this argument doesn't hold water on account of Old GM's "deceptive and unfair acts and omissions." Of course, the death and injury suits are going ahead, and GM is in the process of negotiating.
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[via Bloomberg]
