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GM Accused of Racketeering in Midst of Recall

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Brian Hendricks2 years ago

According to a complaint filed in federal court last week, General Motors Company (GM) has been accused of racketeering in relation to last year’s ignition-switch recall.

About the Ignition-Switch Recall

GM recalled nearly 3 million vehicles because of a faulty ignition-switch. The switch can slip, cutting power to systems that are imperative to the safe operation of the vehicle.

Reuters reports that 144 people have died as a result of the defect, and 229 more were injured. More than 200 lawsuits have already been filed against GM.

As a result, the motor company has already been fined $35 million for failing to respond to the problem in a timely manner.

About the Racketeering Accusation

The newest lawsuit being filed against GM includes racketeering charges. Racketeering is defined as bribery, counterfeiting, felony theft, embezzlement, various kinds of fraud, unlawful enterprise, obstruction of justice, or money laundering.

GM has been accused of trying to conceal the ignition-switch problem. Allegedly, a law firm and a claims-management company were also involved in the racketeering. This concealment falls under the “unlawful enterprise” section of the racketeering definition.

The current lawsuit aims to include about 20 million owners of GM vehicles. Plaintiffs hope to receive more than $10 billion in restitution.


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