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July 1, 2014

Orange County, CA District Attorney Takes Duplicative Legal Action Against GM

Orange County, CA District Attorney Tony Rackauckas is taking legal action against General Motors, charging the company with “unfair business practices and deceptive marketing for concealing ignition-related defects and others in order to boost its bottom line,” reports The New York Times.

This case raises serious questions about the alarming expansion of enforcement authorities, and the growth in various government entities that are bringing legal actions against private companies.

The Times reports that, according to California state law, “county prosecutors can file such cases on behalf of all affected consumers in the state. With civil fines of up to $5,000 for each affected car sold in California.”

The paper also reports, however, that Rackauckas “claims he is more interested in holding GM executives publicly accountable.”

Rackauckas brought similar charges against Toyota last year in a case that settled for $16 million.

The announcement of his legal action comes the day after Kenneth Feinberg, the administrator of the compensation fund set up by GM in the wake of the ignition defects, announced the details of the compensation plan.

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