GM Reaches Fuel Economy Class Action Settlement

Preliminary approval was granted to a class action settlement, resolving allegations that General Motors duped consumers into believing certain GM SUVs had better fuel economy.

Lead plaintiff Sean Tolmasoff alleged in his class action lawsuit that GM falsely stated the fuel economy in three sport utility vehicles was 22 miles per gallon, when it really was 17 miles per gallon. The GM affected vehicles include the 2016 Chevrolet Traverse, the 2016 Buick Enclave, and the 2016 GMC Acadia.

The class action lawsuit claimed that GM’s overstatement of fuel economy in these vehicles hit owners and lessees twice. First, because they paid more for the vehicle than they would have if they had known the true fuel economy, and again when they paid for additional fuel at the pump.

U.S. District Judge George Caram Steeh certified a Class of SUV owners and lessees who purchased vehicles with a window sticker indicating incorrect fuel economy.

“Common issues exist among Settlement Class Members’ claims regarding whether the Defendant is liable for the misstated EPA estimated mpg on the Class Vehicles,” says the order granting preliminary approval.

The judge also granted preliminary approval to the settlement agreement.

“The court finds that, for purposes of settlement only, the [certification] requirements … are met by the settlement class,” noted the order.

Under the terms of the GM class action settlement, Class Members can receive either a check or credit toward their next purchase of a new GM vehicle within the next three years. The credit amounts to $2,000. Depending on the SUV’s model, Class Members can receive a check of up to $1,500.

The order granting preliminary approval of the settlement agreement notes that GM does not admit liability or fault or admits to any of the class action claims.

Judge Steeh also approved the notice procedures set forth in the proposed settlement agreement.

“The Court finds that the proposed Notice Plan contemplated constitutes the best notice practicable under the circumstances and is reasonably calculated, under the circumstances, to apprise Settlement Class Members of the pendency of the Action,” noted the order.

The class action estimates that nearly 7,300 vehicles were affected by the overstated fuel economy.

The parties will meet in November for a final approval hearing.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiff is represented by E. Powell Miller and Sharon Almonrode of Miller Law Firm PC and Richard D. McCune, David C. Wright, Joseph G. Sauder, Matthew D. Schelkopf, Joseph B. Kenney and Elaine S. Kusel of McCuneWright Arevalo LLP.

The GM Fuel Economy Class Action Lawsuit is Sean Tolmasoff v. General Motors LLC, Case No. 2:16-cv-11747, in the U.S. District Court for the Eastern District of Michigan.