OnStar subscriber sues over 2008 loss of coverage An OnStar subscriber in Virginia has filed a class-action lawsuit in federal court seeking $5 million from General Motors and OnStar Corp. Robert Weaver, of Manassas, Va., filed the suit in U.S. District Court in Detroit saying he bought OnStar's Safe and Sound Plan as an option from his dealership for his 2002 Cadillac Eldorado, but now GM and OnStar say that service will not operate in his vehicle after Jan. 1, 2008. Next year, cellphone carriers, which provide OnStar with its communications link to customers, are completing the transition from analog to digital service. The year 2008 is the date when analog networks are scheduled to be shut down; OnStar previously installed analog components in its vehicles, but is now using digital offerings. Weaver contends that GM and OnStar knew but did not disclose that a switch to digital networks was to occur and that such a switch would render analog OnStar systems inoperable. OnStar began informing about 500,000 subscribers in March that the OnStar equipment in their vehicles will continue to function until Jan. 1 on the analog network and that it cannot be upgraded. According to the suit, neither GM nor OnStar made any offer to compensate Weaver for the investment and subscription fees. GM said in March that it is offering OnStar subscribers affected by the switch a year of free service if they buy or lease another GM product. The 500,000 subscribers amount to about 10 percent of OnStar's subscription base. "It's a frustrating situation for us and our subscribers," Bill Ball, OnStar's vice president of public policy, told Automotive News in March. "We are hopeful and confident that some of these subscribers will take the offer of an additional year of free service and buy or lease a new GM vehicle." The lawsuit also notes that GM vehicles equipped with an analog/digital-ready OnStar system will have their systems rendered inoperable unless these customers pay GM a $15 upgrade fee. http://www.rcrnews.com/apps/pbcs.dll/article?AID=/20070511/FREE/70511014/1017/FREE
The same thing will happen with ADT Home Security systems. On the analog shut-down date, their wireless backup system will go dark. These companies knew this would happen over 5 years ago. Why didn't they rush development of digital modules then? For that reason, I justify this lawsuit, but I highly doubt he will get the $5 million he's asking. GM's lawyers must be laughing. The most he's gonna get is a new car. I also think the claim that those analog systems cannot be upgraded is just GM's unwillingness to spend the money because those units are older and they rather not support them. So to me that's 100% pure grade BS from concentrate. Typical irresponsible business attitude. If the right equipment is manufactured, even a 1972 Pinto can have OnStar. I hope this lawsuit forces GM to reconsider their position and start upgrading those analog units.
He filed a Class action suit, so they may get the $5 Million to split between the 500,000 customers. But I agree these companies are being reactive instead of pro-active on things like this, figuring they can force the FCC into not allowing the shut down to happen & it serves them right.
A 72 Pinto is a Ford product, and therefore wouldn't have OnStar, but I cannot resist. "Hello, this is Julie from OnStar. We have received a fuel tank detonation signal from your vehicle. I'm notifying Emergency Services now..." :lol: -Jay
I can understand that. The auto manufacturers are a bit stubburn on this. I had a nasty call with mercedes, the system was analog despite the phone in the car being digital and they do collect a hefty annual fee. The worst part was when they were needed the most after an accident the SOS alert system did not work.
To be really truthful about this they should make the connectos on the modules standard, so if technology changes and the customer still wants the service they just buy a new module. -Jay
If anyone has ever participated in or seen the results of class action suits the end user who is affected by something almost always gets near squat. The only people who make anything are the lawyer$ who make out like the bandits that they are.
How much will the lawyers get if this case succeeds? :headscrat I didn't see your post at first. Lawyers always come out on top.
If awarded by the court, the lawyers get a good chunk of the $5M. Whatever is left is to be split among the members of the class. So in the end, each member of the class might just get enough money to go to their local gas station and fill their tank.
GM should just upgrade the units. They can be upgraded. If I was the person suing them I would sue them for $5M in a class action suit and for a new car.
:lmao: Don't you think GM thought customers would just quietly get a new car when they found out they could not upgrade their OnStar units? GM should have made them upgradable and the only reason I can think of that they didn't is because of money. They must have looked at this eventuality and if they didn't they deserve to be in the financial situation they're in. $5 million? Based on what the end user gets in class action lawsuits like this, I would have expected the requested damages to be much higher.
Evidently you're not aware of how class action suits go and what is usually the final outcome. You'll be lucky if you score an oil change at your local GM dealership if a suit was even decided in your favour. Don't forget that a class action is dealing with thousands of litigants. The only people who make out well in a class action suit are the lawyer$. You can dream about a car and $5M but you ain' gonna get it I can almost guarantee you. And you have to be pretty naïve if you don't think GM would have some high $ attorneys working for them so that they don't take it on the chin. You may be lucky enough to afford one attorney and he likely won't do it pro-bono either. GM despite their problems has millions in assets. A dream would be all that you have.
I meant that I would file the class action suit and everyone affected would get their share of the payoff, and then sue for a new car if they did not offer to replace it.
Let me play devils advocate here. Why didn't we sue MS or Congress for the DST mess that was created? What will happen to the users who stubbornly don't want to upgrade their analog phones to digital? What will happen when Analog TV goes by the way side? Sue the government? Replacing 500K users systems would cost more than 2-3 years of service for those same users, that's crazy! I think the free year of OnStar is fair if the customer foots the bill for the system upgrade with a 25% discount. This nonsense of buying a new car is over the top, tho. Guys, my Dell XPS600r doesn't support Vista because the hardware is to old....I demand a new PC!!! My new Vista PC doesn't support my old software that my Dell can't handle!!! Why do i always have to upgrade?????!!!!:loony: Seriously, does anyone honestly think that GM forsaw this? C'mon lets be reasonable. The cars & systems are too old.....we can always use our trusty cell phones as a workaround until we can afford that new car, no? Oh wait.....my analog phone won't work either. :biggrin: :biggrin: :biggrin: :biggrin: :biggrin: :biggrin: :biggrin:
You still don't get it. "Everyone" would get "diddly-squat" as a settlement. Lawyers are the only ones who make out in any kind of big way. And you are being extremely naïve to think that you might get a vehicle out of the class action. You might get a discount on a pair of wiper blades if you're lucky.
Here's how I see this playing out: GM/Onstar will admit no wrongdoing, and will settle out of court. They will pay plaintiff's legal fees in the amount of eleventy bajillion dollars. Eligible class members will receive a voucher for $100 off of the MSRP of a new Onstar-equipped GM vehicle and one year of Onstar "safe and sound" service.
Learn to read. If they didn't offer to replace it after the suit, I would sue them SEPARATELY for a new car.
I don't believe you can sue separately if you agree to be part of a class in a class action suit. I think you give up that right.
I can cofirm that mercedes requires a paid for upgrade. Told them about the this law suite and that sparked some interest and they asked if they can call back later.
That is correct. One could only bring about a separate legal action if you "opt-out" of the settlement class. However, you generally have the option of opting out after the proposed settlement is disclosed.
And you would be silly for doing so. You don't really think the huge number of attorneys that GM has on its payroll is going to roll over for you? Puhleez. It's nice to say that you'd do such a thing against a monolith like GM, but reality is another thing entirely. I suppose you probably also think that attorneys get paid $9.95 an hour for their work as well.