General Motors is being sued by the attorney general of Arizona for $3 billion, alleging the automaker defrauded consumers in its handling of recalls, according to a report in the New York Times on Thursday. In a scathing complaint, the suit suggests GM intentionally misled consumers through its advertising and public statements, and that some top executives were complicit in the misdeeds, the report said. Arizona is breaking from a group of 48 states that have been pursuing an investigation into GM's handling of a recall for an ignition-switch defect that was delayed for decades, but Arizona AG Thomas Horne said he felt a separate suit was the best way to protect the citizens of Arizona, the report said. GM's stock, which fell 1% in premarket trade, has dropped 21% year to date through Wednesday, compared with an 11% rise in the S&P 500.
Copyright © 2014 MarketWatch, Inc.
Continue Reading Below