Court Rules GM Board Can't Be Held Accountable Liable In Over 100 Deaths

A court has dismissed a lawsuit against General Motors that alleged the board of directors did not perform its duty in preventing the mounting losses from the sale of vehicles with faulty and deadly ignition switches.

The shareholder suit sought to recover losses due to expenses, fines, lawsuits and damages to the company as a result of the 119 deaths and 234 injuries associated with faulty parts and a huge and costly recall.

GM had filed a motion to dismiss the action and the Delaware Chancery Court made its decision Friday to do so. The decision was not made public until late Monday night

MDarringer - 6/30/2015 9:21:12 AM

+1 Boost

The court got it right. While I do think losses should be compensated, greedy lawyers and their greedy clients see deep pockets and big dollars. If the board were found liable, then the recoverable amount of the lawsuits would have been higher.

Vette71 - 6/30/2015 1:02:00 PM

+2 Boost

Companies have Directors Insurance Policies to protect the Board from these kinds of things, especially when lawyers go after their personal wealth. No sane person would serve on a public company board without this. The risk is too high in lawsuit happy USA. Directors don't manage the company; they represent shareholders and rely on management and outside auditors being truthful with them.