GM Back In Court For Protection From Ignition Switch Lawsuits Prior To Bankrupctcy

GM wants a federal bankruptcy judge to bar lawsuits related to conduct before its 2009 bankruptcy restructuring.

The automaker made the request Friday in a court filing in a lawsuit filed in San Francisco. A hearing is set for U.S. Bankruptcy Court in New York for April 25 on whether the court has jurisdiction.

GM faces about three dozen proposed class-action lawsuits related to the recall involving 2.59 million vehicles worldwide for an ignition switch defect linked to 13 deaths.

GM says it faces at least 41 lawsuits in 19 U.S. district courts across the country, including in Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Louisiana, Michigan, Missouri, New York, Pennsylvania and Texas. A judicial panel is debating whether to consolidate the actions into a single court for early stages of the case.

 

MattDarringer - 4/16/2014 3:51:50 PM

+1 Boost

Class action lawsuits are about consumer greed. The proper solution is to fix all the ignition switches, pay for any repairs caused by the switches failing that were incurred by owners, and seeking financial settlements with the families who had severe injuries or death. The owners involved in the class action lawsuit simply want money for nothing. The sooner class action lawsuits and punitive damages are removed as an option in our legal system the better. Bottom line is that there are MANY Cobalt owners who have had no problems with their switches. They are not entitled to damages because they have had none. Fix the switch...good as new.

xjug1987a - 4/16/2014 4:09:17 PM

-1 Boost

Completely agree Matt.

Agent009 - 4/16/2014 6:55:25 PM

+4 Boost

Add these losses to fines the Justice Department will levy and GM could be bankrupt again.

MrEE - 4/16/2014 7:02:01 PM

+5 Boost

Since the conduct and coverup continued after bankruptcy, I don't see any reason to take them off the hook. Rationalizing the liability and the bankruptcy liability bailout is what lead to the bean counters from doing the recall in the first place. No get out of jail card here.

MattDarringer - 4/17/2014 10:26:24 AM

-3 Boost

So let's kill the company due to some holier than thou moral principle?