${site.data.firmName}${SEMFirmNameAlt}
In Association With Lieff, Cabraser, Heimann, & Bernstein, LLP

Local: 416-548-9874

Toll Free: 1-800-462-3864

Multiple carmakers have been accused of systematic fraud

The car industry has been changing in recent years, and not just because of the shift to alternative fuel and hybrid vehicles. Multiple cases of systematic fraud have also played a role in exposing issues with the industry; forcing changes to be made.

More recently, Volkswagen has been at the heart of one of these scandals. Cars have to be made to pass specific emissions tests, and Volkswagen found a way around those tests with its diesel-powered cars. To fool the tests, the company deliberately used hidden software that would trick the sensors.

The impact on the company is undeniable. It stands to reason that there will be many lawsuits in the coming years. The company may have to pay fines amounting to billions of dollars. Even now, the stocks have been plummeting, dropping by around one third, since consumers found out what happened.

It's even been mentioned that the reputation for reliability and trustworthiness of all German products could take a hit due to this scandal.

This type of consumer deception isn't limited to VW, though. An airbag maker called Takata knew there were dangers with its products more than 10 years ago, though they didn't come to light until now. General Motors knew about the issues with ignition switches years before they were officially discovered, and 124 people died as a result--leading to $900 million in fines. Last year, Toyota settled for $1.2 billion because of acceleration issues, and as a result, vehicles in Canada and the U.S. were recalled.

When consumer deception leads to injuries and financial losses, it's important for consumers to know what rights they have regarding class action lawsuits.

Source: The Economist, "A mucky business Systematic fraud by the world's biggest carmaker threatens to engulf the entire industry and possibly reshape it," accessed Oct. 29, 2015

No Comments

Leave a comment
Comment Information

Ask Our Lawyers

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Rochon Genova LLP
121 Richmond Street West, Suite 900
Toronto, ON M5H 2K1

Phone: 416-548-9874
Toll Free: 1-800-462-3864
Fax: 416-363-0263
Toronto Law Office Map

map