Complaint Against General Motors Corporation
A class-action lawsuit has been filed against General Motors and its former Vice President for Color and Motivation, John Sullivan. The U.S. Justice Department is now investigating whether the auto manufacturer discriminated against minorities in its hiring practices.
The complaint, which was filed by the U.S. Department of Labor, asserts that Sullivan broke the law by keeping employees who were less likely to become a valuable part of the company into his African American Studies department.
Lawsuit Against General Motors
A class action lawsuit is when a large number of people file suits together, under the state law in which they live. This lawsuit against General Motors was filed by four unions. They are alleging that the automaker did not take into consideration the fact that some of its customers were minorities and women when it comes to purchasing trucks and cars that are equipped with features such as an in-dash entertainment system.
This allegedly defective infotainment system, according to the union, is very useful for customers like these. The class action also claims that the company didn’t take into consideration that some of its dealers may actually sell used General Motors vehicles equipped with the infotainment system that has been alleged in the complaint.
The complaint further contends that John Sullivan, current Vice President of General Motors, didn’t tell the American union of car dealers that it was intending to sell used vehicles equipped with the in-dash entertainment system to minority buyers.
It is claimed that this information would have helped the company avoid breaking federal and state laws. It is also claimed that Sullivan and other officers of the corporation knew or should have known that selling used vehicles equipped with the defective infotainment system could get them in trouble with the government.
In fact, it is alleged that Sullivan told the union that the sale of used vehicles with in-dash entertainment systems is one of the ways that the company is meeting its workforce needs. However, he said that it is not common for the corporation to sell used vehicles with in-dash systems.
An additional point of contention in the lawsuit revolves around whether or not the company violated any obligations of fiduciary or other employment principles.
Federal and state laws require companies to have a strong corporate ethics code and proper disclosure of material and non-material information to employees, suppliers and clients. If outside lawyers failed to abide by these strictures and agreements, it is believed that they likely engaged in improper and unlawful conduct.
According to the complaint, two plaintiffs were employed as technical support personnel by General Motors.
These plaintiffs had previously worked at Lotus and Chrysler, and it is alleged that they received training regarding the installation of the defective A.C. engine that started showing up in recalled trucks and causing major engine failures. Another plaintiff was a dealer in the parts of Michigan that is said to have received training in installing the faulty A.C. engine.
Both plaintiffs are seeking compensatory and punitive damages as a result of their allegedly improper actions.
A class action lawsuit, which has many similarities to a personal injury lawsuit, allows multiple plaintiffs to file suits together because they had a similar injury, or they all had vehicles in the same manufacturer as the class members who were affected.
The complaint further states that since the defendant is a globally-recognized manufacturer, it has “pervasive” manufacturing policies, which allegedly have caused the class action lawsuit. If you would like more information on filing a lawsuit like this, contact an attorney who practices in this area.