GM Vs. Toyota Lawsuits
An auto class action lawsuit has just been filed against the bankrupt auto consignment firm Treadz Auto Group Inc. by a Calgary court. The Treadz Auto group lawsuit claims that the former owner, Sean O Brien, of cheating clients of over $2 million over six years. He faces several criminal charges including criminal fraud, forgery and credit card fraud. The lawsuit also claims that Mr O’Brien defrauded the Canadian Revenue Agency when he declared bankruptcy in 2021.
The lawsuit was brought by Michael J. Smith, a resident of Alberta. His family owns and operates four vehicles, which all have been purchased through fraudulent means. The vehicles have no insurance and the only means of repair and maintenance are scheduled by an independent mechanic who is not licensed by the Transportation Safety Board. The family uses Mr O’Brien as the go-between for the insurance companies. They then find themselves responsible for thousands of dollars in vehicle repairs and maintenance costs.
The suit further claims that Mr O’Brien sold the cars with spark plugs and faulty brakes knowing that they were faulty and dangerous for the drivers and passengers. The police received a report on one of the stolen vehicles stating that it had been sold with faulty catalytic converters and brakes. The investigation found that the vehicles were sold to two individuals on the basis of a supposed undercover investigation that was never completed.
The lawsuit follows a pattern of losses experienced by several other plaintiffs and was expected before the current economic climate. The plaintiffs are asking for damages that amount to an estimated loss of over one and a half million dollars. The settlement will be distributed between the major insurance companies involved in the case. One of the major insurers, Allstate, recently paid a $1.35 million settlement to settle a lawsuit brought forth by the families of a number of children who died in a hot car. There have been no reports of significant progress in the investigations into the vehicular accidents that killed the children in the past.
Plaintiffs in the Class Action lawsuit claim that they should be allowed to share in the financial rewards that come with solving motor oils recalls and fixing defective vehicles. They contend that they have a case because they have been the victims of negligence. The majority of vehicles manufactured are not defective according to federal standards according to statistics provided by the US Department of Transportation. Approximately six million vehicles are manufactured each year, many of which are being recalled today. Most of these automobiles were manufactured with synthetic motor oils or petroleum-based motor oils.
It is believed that up to one.2 billion auto parts may need to be replaced in the next few years due to vehicles being built with faulty fuel tanks and other maintenance concerns. It is also believed that there are more vehicles than previously thought obsolete or no longer capable of running with today’s gasoline prices. Some of the plaintiffs in the Class Action lawsuit are working to put pressure on GM and Toyota to build more replacement parts to replace the vehicles damaged in the most recent Accident. Others who are filing suits are worried that the delays in releasing replacements could cause the cost to skyrocket through the roof. This would also mean less for their medical bills if they were injured in an Accident caused by faulty GM or Toyota parts. The plaintiffs’ main argument is that it is unfair that they are suffering in the aftermath of an Accident when the large corporations who made the vehicles are responsible.