Former GM Dealers Forge Ahead With $750 Million Class Action Suit
General Motors of Canada is facing a large class action lawsuit from more than 200 GM dealers whom were given permission to do by an Ontario judge. The dealers are suing for approximately $750 million in restitution for the forced closure of their franchises in 2009. The dealers asserted that GM would incur significant financial losses if they had refused to comply to shut down their franchises. Investigation is underway to determine if GM has violated the franchise laws of Canada based on what they did. This GM case could potentially cause drastic changes to the automobile industry as any car insurance company may be affected by these changes.
GM of Canada claims that it was instructed by the government to eliminate the dealerships as a condition to receive several billion dollars in bailout assistance.
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