GM Faces Class Action Lawsuit Over Allegedly Defective Transmissions

Case Overview: A class action lawsuit has been filed against General Motors, alleging the company sold vehicles with defective transmissions.

Consumers Affected: Owners of GM vehicles equipped with 8L45 and 8L90 eight-speed automatic transmissions from 2015 to 2019.

Court: U.S. 6th Circuit Court of Appeals

General Motors is set to face a class action lawsuit after a federal appeals court ruled that drivers from 26 states could sue the automaker as a group.

The lawsuit claims that GM knowingly sold hundreds of thousands of vehicles with defective transmissions, affecting a range of models including Cadillac, Chevrolet, and GMC vehicles from 2015 to 2019.

The U.S. 6th Circuit Court of Appeals in Cincinnati upheld the decision on Aug. 29, stating that the lower court judge was within his rights to allow the drivers to sue in groups.

The vehicles in question, equipped with GM’s 8L45 and 8L90 eight-speed automatic transmissions, have been reported to shudder, shake, and lurch during shifting, the lawsuit alleges. 

The case covers approximately 800,000 cars, trucks, and SUVs, with 514,000 vehicles certified in the lawsuit classes.

GM Accused of Concealing Defects

Drivers involved in the lawsuit allege that GM not only sold vehicles with faulty transmissions but also downplayed the severity of the problem. 

The lawsuit claims GM instructed dealers to reassure customers that harsh shifting was "normal" behavior, even after repair attempts. 

Despite the automaker's efforts to oppose class certification by claiming that most customers did not experience issues, Circuit Judge Karen Nelson Moore ruled that overpaying for potentially defective vehicles was sufficient grounds for the lawsuit to proceed.

Judge Moore also dismissed GM's argument that differences in experiences among plaintiffs should prevent the case from moving forward. She stated that the focus should be on whether GM concealed known defects and if such information would have been important to buyers.

Federal Court Allows Class Action Lawsuit Against GM To Proceed

The court also rejected GM's push to move many of the claims to arbitration, returning the case to U.S. District Judge David Lawson in Detroit. 

Judge Lawson had initially certified the class action in March 2023. 

Meanwhile, Texas recently sued General Motors over its collection and selling of driver data, alleging the automaker tricked drivers into sharing detailed driving records that were then sold to insurance companies.

Case Details

• Lawsuit: Speerly et al v. General Motors LLC
• Case Number: 23-1940.
• Court: 6th U.S. Circuit Court of Appeals

Plaintiffs' Attorneys

• Cohen Milstein Sellers & Toll 

Have you experienced problems with your GM vehicle's transmission? Share your experiences in the comments below.