By Jessica Dye
NEW YORK (Reuters) - A U.S. judge on Friday dismissed some claims brought against General Motors (NYSE:GM) by customers seeking to recoup vehicle values that they say were lost due to a rash of recalls in 2014, including one for a faulty ignition-switch.
U.S. District Judge Jesse Furman in Manhattan federal court dismissed racketeering and some state-law claims, as well as claims from customers whose vehicles were not allegedly defective when sold.
Plaintiffs' pursuit of damages based on perceived harm to GM's brand following more than 70 recalls in 2014 was "unprecedented and unsound," he said.
Plaintiffs’ lawyers said they were seeking as much as $10 billion in damages in the proposed class actions, which were consolidated before Furman in federal court.
A lead lawyer for plaintiffs, Steve Berman, said they planned to appeal Friday's ruling. But even with the dismissals, claims on behalf of millions of other GM owners would continue, he said.
The claims focus on plaintiffs’ claims that their vehicles diminished in value as a result of a defective ignition switch and more than 70 subsequent recalls in 2014, including for parts unrelated to the switch such as headlights and power doors.
The company has paid $2 billion in criminal and civil penalties and settlements over the switch, which can slip out of place and cut power to air bags, steering and brake systems. The part has been linked to 124 deaths and 275 injuries. GM has admitted that some employees knew about the issue for more than a decade before a recall was ordered.
A federal appeals court in Manhattan ruled on Wednesday that GM is not protected from economic-loss lawsuits over the ignition switch by the terms of its 2009 bankruptcy.
