Soders v. General Motors - Official Court Website

What is this case about?

This case is about GM adding 1% of the Manufacturer’s Suggested Retail Price (“MSRP”) to the invoice of certain new vehicles it sold to its dealers, as part of its “Marketing Initiative” programs.
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What does the lawsuit claim?

The lawsuit claims that GM required dealers to use the 1% for advertising, and that this violated the Pennsylvania Board of Vehicles Act (“PBVA”). The lawsuit also claims that dealers passed the 1% on to customers when they purchased vehicles. More details on the lawsuit’s claims can be viewed by reading the Class Action Complaint.
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What is the Pennsylvania Board of Vehicles Act ("PBVA")?

The PBVA is a Pennsylvania statute that says that manufacturers cannot require new vehicle dealers to financially participate in advertising campaigns.
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Was the 1% added to the invoice of all new General Motors vehicles?

No. It was added to the invoices of only the following models, starting on the following dates: (1) Chevrolet, on September 1, 1988; (2) GMC Truck, on September 1, 1988; (3) Cadillac, on July 1, 1989; (4) Oldsmobile, on July 1, 1989; (5) Pontiac, on July 1, 1990; and (6) Buick, on August 1, 1990. The 1% amount was no longer added to invoices after March 31, 1999.
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What was the lawsuit asking for?

The lawsuit was asking for the 1% to be paid back to members of the Class.
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What does General Motors ("GM") claim?

GM denies any wrongdoing, and states that the 1% was a legal, wholesale price increase to its dealers. GM also states that the dealers did not necessarily pass on the 1% to customers. More details on GM’s position can be viewed by reading GM’s Answer to Complaint.
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Has the Court decided who is right?

No. The Court did not decide in favor of the Class or GM. Instead, both sides agreed to a settlement.
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What is the case called?

This class action is known as Soders v. General Motors Corporation, No. CI-00-04255.
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Who is in charge of this case?

Judge Louis J. Farina of the Court of Common Pleas of Lancaster County, Pennsylvania is overseeing this class action.
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What is a class action lawsuit?

In a class action, one or more people called “Class Representatives” or ‘Plaintiffs” (in this case, Donna Soders) sue on behalf of people who have similar claims. All of these people are a “Class” or “Class Members.” In a class action lawsuit, one court resolves the issues for everyone in the Class—except for those who excluded themselves.
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Who is the Defendant?

The company that has been sued is called the “Defendant.” In this case, the Defendant is GM.
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Why is there a settlement?

The Court did not decide in favor of the Class or GM. Instead, both sides agreed to a settlement. The settlement provides benefits to Class Members, and avoids the costs, risks and delays of a trial. The Class Representative, her lawyers and GM believe that the settlement is fair, reasonable, adequate, and in the best interests of all Class Members.
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Am I part of the settlement?

The Court has decided that the Class includes everyone who purchased a new vehicle at retail in Pennsylvania from a franchised GM dealer that was made or distributed by the Chevrolet, GMC Truck, Cadillac, Oldsmobile, Buick, or Pontiac divisions of GM. The GM dealer must have purchased the new vehicle from GM or any of its divisions between the following dates:

Vehicle	Date of Purchase
Chevrolet or GMC Truck	September 1, 1988 and March 31, 1999
Cadillac or Oldsmobile	July 1, 1989 and March 31, 1999
Pontiac	July 1, 1990 and March 31, 1999
Buick	August 1, 1990 and March 31, 1999

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Are there exceptions to being included?

You are not a Class Member if you leased your new vehicles, purchased your vehicles under the GM Employee Purchase Plans, as a GM-qualified fleet purchaser, or as government entities, or previously asked to be excluded from the Class.
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What if I leased my vehicle?

If you leased your vehicle, you are not included in the Class.
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What if I traded in or sold my vehicle?

As long as you fit the description in “Am I part of the settlement?” above and do not fall within any of the exceptions, you are a part of the Class, even if you have since traded in or sold your vehicle.
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What does the settlement provide?

GM will provide all eligible Class Members with rebate certificates worth up to $200 towards the purchase or lease of a new Buick, Chevrolet, Cadillac, GMC Truck or Pontiac vehicle. GM will also separately pay the costs associated with administering the settlement, lawyers’ fees and costs, and an amount to the Class Representative. More details about the settlement can be viewed by reading the Settlement Agreement.
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What can the rebate certificates be used for?

The rebate certificates can be used toward the purchase or lease of a new Buick, Cadillac, Chevrolet, GMC Truck or Pontiac vehicle.
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How long will the rebate certificates be valid?

The rebate certificates will be valid until three years after the settlement receives final court approval.
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How many rebate certificates will I receive?

You will receive one rebate certificate worth up to $200 for each new Buick, Cadillac, Chevrolet, GMC Truck, Oldsmobile or Pontiac vehicle that you purchased during the periods listed in the “Am I part of the settlement?” question above.
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Can I use more than one rebate certificate at a time?

As long as you received your certificates directly through this settlement and they were not transferred to you from someone else, you may use up to two towards the purchase or lease of one vehicle. Any additional certificates must be used toward the purchase or lease of another vehicle.
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Can I use a rebate certificate with other discount programs?

You may use your rebate certificates along with any other available discount programs, except the GM Employee Discount Program, unless that program is being extended to all customers.
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Can I give my rebate certificate to someone else?

If you do not plan to buy or lease a new vehicle within the next three years, you may transfer your rebate certificate(s).
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Who can I transfer the rebate certificates to?

You may transfer your rebate certificate(s) to your immediate household members (anyone living at the same address), your parents or your children at any time, as long as the certificate(s) have not expired.

During the last two years that the rebate certificates are valid, you may transfer your rebate certificate(s) directly to anyone. The rebate certificates will contain all the instructions you need and, once transferred, will be worth 75% of the value of the original certificate.

Each rebate certificate can be transferred only once, and it must be a direct transfer from you to another person. The transferred certificates may be used with any other available discount for the purchase or lease of a new GM vehicle, except other rebate certificates distributed as part of this settlement and GM Employee Discount Programs, unless those programs are being extended to all customers.
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Can I get out of the settlement?

No. Class Members were already given an opportunity in an earlier notice to exclude themselves from this class action. Class Members who did not previously submit an exclusion request may not be excluded from the settlement now. This means that you are legally bound by the class action and cannot sue GM about the claims in this lawsuit ever again.
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What am I giving up as part of the settlement?

If the settlement becomes final, Class Members will be releasing GM from all of the claims described in section 3(D) of the Settlement Agreement. This means you will not be able to sue GM regarding any of the claims described in the Settlement Agreement. The Settlement Agreement describes the released claims with specific descriptions in necessary, accurate legal terminology, so read it carefully.

How do I get a rebate certificate?

To get your rebate certificate(s), you must submit a valid claim form by June 15, 2009. You can get a claim form at the website, or by sending a written request to:

Soders v. GM - Claim Form Request
PO Box 91196
Seattle, WA 98111-9296

Read the instructions on the claim form carefully, fill out the form, attach copies of any documents you may have, and mail it to the address on the form so that it is postmarked no later than June 15, 2009. After you submit your claim form, you may be asked to provide additional information or documents.
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Why does the claim form as for Alternate Names used?

Claims will be matched against a list of new vehicle deliveries that were produced by GM in this case. If you purchased the vehicle while you were using an alternate name, your purchase will be listed under that alternate name. We would need your alternate name in order to confirm your purchase.
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Why does the claim form ask for the name of Co-Purchasers?

Claims will be matched against a list of new vehicle deliveries that were produced by GM in this case. Only the name of the first purchaser is included on the list. If you purchased your vehicle with someone else, you may have been listed as the second purchaser on the original sale documents. If you were listed as the second purchaser your name will not be included on the new vehicle delivery list. By providing the name of any co-purchaser the Claims Administrator will be better able to confirm the purchase.
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What are the Makes and Models that are asked for in the claim form?

The make of the vehicle will be Buick, Cadillac, Chevrolet, GMC Truck, Oldsmobile or Pontiac. The model of the vehicle will be the type of vehicle that you purchased from that make. For example, if you purchased a Chevrolet Malibu, the Make would be Chevrolet, and the Model would be Malibu.
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What are the Model Years and Purchase Years that are asked for in the claim form?

The Model Year is the year of the vehicle. The Purchase Year is the year in which you bought your vehicle. For example, if you bought a 1996 Buick Skylark in March 1997, the Model Year would be 1996 and the Purchase Year would be 1997.
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What is the VIN asked for in the claim form?

The VIN is the Vehicle Identification Number which is different for all vehicles. The VIN is 17 characters long and uses a variety of numbers and letters. Most VINs can be found on the driver’s side of the interior dashboard. They are also available on your vehicle’s insurance and title records.
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What if I can't provide all of the requested information or documents?

Submit the claim form with all of the requested information and materials that you can provide by using your best efforts.

If you are not able to complete every portion of the claim form or provide supporting documents, your claim may still be accepted, if: (1) you or a co-purchaser listed on your claim form appears on the list of new vehicle deliveries that GM produced in this case; or (2) you list a VIN that matches a qualifying new vehicle that was sold to you during one of the periods listed in the “Am I part of the settlement?” question above.

If you are not on the list and you cannot provide documents or a qualifying VIN, but you complete all other sections of the claim form, you could receive a certificate worth $200, $100, or none at all, depending on how many other Class Members submit this type of undocumented claim. The certificate would be worth $200 if 10% or less of all claims submitted are this type of undocumented claim, or $100 or more if more than 10%, but less than 20%, are this type of undocumented claim. If more than 20% of all claims are this type of undocumented claim, you will not receive a rebate certificate.
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Could my claim be rejected?

Yes. Your claim could be rejected if GM has evidence that you are not eligible to receive a rebate certificate. This could include evidence that you leased, rather than purchased, your vehicle, or evidence that you purchased the vehicle under a GM Employee Discount Program or as a GM-qualified fleet purchaser or governmental entity, or evidence that you previously excluded yourself from this case. Your claim may also be rejected if you do not provide enough information to support your claim.
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What if I purchased my vehicle with someone else?

If you purchased a vehicle with someone else and you both submit a claim form, the rebate certificate will be sent to: (1) the person whose name appears on the list of new vehicle deliveries; or (2) if none of your names appear on the list, the person whose name appears first on the purchase documents; or (3) if none of your names appear on the list and the purchase documents have not been provided, the person with the earliest postmark date for his or her claim form.
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When will I get my rebate certificates?

Your rebate certificate(s) will be mailed after the settlement is approved, and after any appeals are resolved. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. Everyone who sends in a claim form will be informed of the progress of the settlement, and updates will also be posted on www.onepercentcase.com. Please be patient.
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Do I have a lawyer in this case?

Judge Farina has decided that Joseph F. Roda and Michele S. Burkholder of RODANAST, P.C., in Lancaster, Pennsylvania, are qualified to represent you and all Class Members. These lawyers are called “Class Counsel".
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Who is paying for the lawyers for the Class?

You will not be personally charged for Class Counsel’s fees or costs. As part of the settlement, GM will separately pay Class Counsel’s fees and costs that are approved by the Court.
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How much will the lawyers for the Class be paid?

Class Counsel will ask the Court to approve a payment to them of up to $1,886,000 for attorneys’ fees, for their work in investigating the facts, litigating the case, and negotiating the settlement. This represents less than their actual fees from the eight and a half years they have been working on this case. They will also ask the Court to approve a payment of up to $500,000 as reimbursement for the out-of-pocket expenses that they paid to litigate the case, and a payment of $5,000 to the Class Representative, who helped the lawyers on behalf of the whole Class. The Court may award less than these amounts. GM has agreed not to object to these requests for fees and costs.
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Will the lawyer's fees affect the amount of my rebate certificates?

No. The fees, costs and expenses will be paid separately by GM, as part of the settlement. These payments will not affect the amounts available for rebates
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Should I get my own lawyer?

You do not need to hire your own lawyer because Class Counsel is working on your behalf. However, you may hire your own lawyer at your own expense.
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What if I don't like the settlement?

If you are a Class Member, and you do not like any part of the settlement, you can object to it. The Court will consider your views. To object, you must send a letter via first class mail saying that you object to the Soders v. GM settlement. Be sure to include your name, address, telephone number, signature, and the reasons why you object to the settlement. Mail the objection no later than March 16, 2009 to:

Soders v. GM Class Counsel
RODANAST, P.C.
801 Estelle Drive
Lancaster, PA 17601

Any objections postmarked after that date may not be considered.
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When and where will the Court decide whether to approve the settlement?

The Court will hold a Final Fairness Hearing at 9:00 a.m. on Tuesday, April 28, 2009, in Courtroom 10 at the Lancaster County Courthouse, 50 North Duke Street, Lancaster, Pennsylvania 17602.
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What will happen at the Fairness Hearing?

At the hearing, the Court will consider whether the settlement is fair, reasonable and adequate. If there are objections, the Court will consider them. The Court will listen to people who have asked to speak at the hearing (see “May I speak at the Fairness Hearing?” below). After the hearing, the Court will decide whether to approve the settlement. We do not know how long these decisions will take.
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Do I have to come to the Fairness Hearing?

No. Class Counsel will answer questions that the Court may have. If you send an objection, you do not have to come to Court to talk about it. As long as you mail your written objection on time, the Court will consider it.
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May I come to the Fairness Hearing?

Yes. You are welcome to come at your own expense. You may also pay your own lawyer to attend.
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May I speak at the Fairness Hearing?

You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter via first class U.S. Mail saying that it is your “Notice of Intention to Appear in Soders v. GM.” Be sure to include your name, address, telephone number, and signature. Your Notice of Intention to Appear must be postmarked no later than March 16, 2009, and must be sent to:

Soders v. GM Class Counsel
RODANAST, P.C.
801 Estelle Drive
Lancaster, PA 17601

You may not be able to speak at the Fairness Hearing if your Notice of Intention to Appear is not postmarked by that date.
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What happens if I do nothing at all?

If you do nothing, you will not receive a rebate certificate. You will be bound by all orders and judgments of the Court in this case, which means you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against GM about the legal issues in this case.
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How can I get more information about what is going on in the case?

The notices and these questions and answers only summarize the proposed settlement. More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement, a claim form, and other information by visiting www.onepercentcase.com. You can also get more information by calling 1-888-866-1738, or by writing to:

Soders v. General Motors Corp.
PO Box 91196
Seattle, WA 98111-9296

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Main Detailed Notice Claim Form Settlement Agreement
Preliminary Approval Order Class Action Complaint GM's Answer to Complaint

Questions? Call toll-free 1-888-866-1738.

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