Should The New GM Still Be Responsible For Old GM Hiding Ignition Switch Defects?

General Motors was hit with a lawsuit on Wednesday demanding that the company be held liable for allegedly concealing ignition problems before its 2009 bankruptcy.

The ignition switch problems led to the recall of 1.6 million vehicles last month.

GM is a different legal entity than the one that filed for bankruptcy protection and reorganized in 2009. The so-called new GM is not responsible under the terms of its bankruptcy for legal claims relating to incidents that took place before July 2009. Those claims must be brought against what remains of the "old" or pre-bankruptcy GM.

Agent009 - 3/20/2014 9:09:49 AM

+1 Boost

If the new GM management knew of the issues and did nothing.. Then yes.

If not then criminal action can be taken at the old GM mgmt...

xjug1987a - 3/20/2014 10:32:36 AM

+3 Boost

It'll never happen.... once everyone is lawyer-ed up the Feds will possibly fine them and take those $$ and give away ObamaPhones. The injured parties will not get a nickel. After the old GM is stuck with the liability the NEW GM should proactively do something for good will... remains to be seen but this is another black eye on GM... not good.

vdiv - 3/20/2014 5:28:27 PM

+1 Boost

You mean to tell me there is a difference between the new and the old?!

drinkglory - 3/20/2014 10:43:35 PM

+2 Boost

The true owners of GM the Uaw are the same owners.