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General Motors is now facing a second lawsuit related to the collection of customer driving data, and the subsequent sale of that data to third party companies, which led to individual insurance rate hikes for the automaker’s buyers.
According to the Detroit Free Press, this new lawsuit was filed on March 28 in the Southern Division of the U.S. District Court for the Eastern District of Michigan, with Larry Reed of Michigan, and Darnell McCoy Sr. of California, listed as the initial plaintiffs in this case. The lawsuit, which is seeking class action status, alleges that GM’s March decision to halt data collection and cut ties with brokers such as LexisNexis and Verisk suggests that GM knew it didn’t have the legal consent required to continue the practice.
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