General Motors (GM) has been ordered by a federal appeals court to face a class action lawsuit alleging the company knowingly sold several hundred thousand vehicles with defective transmissions. The 6th U.S. Circuit Court of Appeals ruled that drivers from 26 U.S. states can sue GM in groups over Cadillac, Chevrolet, and GMC vehicles equipped with 8L45 or 8L90 eight-speed automatic transmissions, sold in model years 2015 through 2019.
The lawsuit claims these vehicles suffer from significant transmission issues, including shuddering and shaking in higher gears and hesitation and lurching in lower gears, even after attempted repairs. Additionally, GM is accused of instructing dealers to reassure customers that these harsh shifts were “normal.”
The case involves approximately 800,000 vehicles, 514,000 of which are in the certified classes. The affected models include the Cadillac CTS, CT6, and Escalade; the Chevrolet Camaro, Colorado, Corvette, and Silverado; and the GMC Canyon, Sierra, and Yukon, among others.
GM had argued against class certification, stating that most class members never experienced problems and, therefore, lacked standing to sue. The company also contended that the differences among class members were too significant to justify group lawsuits. However, Circuit Judge Karen Nelson Moore dismissed these arguments, stating that overpaying for allegedly defective vehicles was sufficient to establish standing. She further noted that the specific experiences of individual plaintiffs regarding shuddering or shift quality were irrelevant to whether GM concealed known defects.
The appeals court also rejected GM’s attempt to push many of the claims into arbitration, returning the case to U.S. District Judge David Lawson in Detroit, who had originally certified the classes in March 2023.
Ted Leopold, a partner at Cohen Milstein Sellers & Toll representing the drivers, expressed optimism following the ruling, stating, “We look forward to holding GM accountable before a Michigan jury.”
