Judge Tells GM They May No Longer Be Able To Hide Behind Bankruptcy In Ignition Switch Lawsuits

General Motors Co. may face and be liable for certain punitive damages in lawsuits related to the ignition switch recall, according to a bankruptcy court judge’s ruling Monday.

Judge Robert Gerber of U.S. Bankruptcy Court in Manhattan said the Detroit automaker can face punitive damages for product liability claims and economic loss claims involving vehicles made by Old GM, or the company that existed before GM’s 2009 bankruptcy.

In a written opinion, the judge said those cases could be sought against today’s GM — or the company that emerged after its 2009 bankruptcy — but only when they “rely solely on New GM knowledge or conduct.”

TheSteve - 11/10/2015 4:13:41 PM

+1 Boost

Here's how the GM story went:
- GM goes bankrupt
- Feds step in and pour a mountain of money into GMin the form of a bailout
- Feds also buy a pile of GM shares, well above the last trading price before bankruptcy, and well above the IPO price of The New GM
- GM transfers assets to The New GM
- GM erases old debts and liabilities
- GM no longer exists as an entity
- The New GM is born, not liable for old sins, or old debts
Meet the new boss. Same as the old boss.

It's amazing what magic corporations can perform that us petty mortals can't.

You decide if The New GM should be liable for things that happened to the original GM.

monster - 11/10/2015 4:33:51 PM

+2 Boost

But I thought people hated the Government and wants freedom for Corporation. They wanted no regulation for corporation. Now you need to also suffer the consequences.

jameswisrik - 11/11/2015 8:21:59 AM

-1 Boost

GM pays back Bailout with other Bailout money ....

Yet no one goes to prison for killing and injuring thousands.

Its great to be a FOO...friends of OBAMA!

TomM - 11/11/2015 4:32:22 PM

+2 Boost

This is what Bankruptcy is - and has been for decades - and it is not something that applies only to GM. Corporations AND individuals have been declaring Bankrupcty and keeping their assets while erasing their debts and liabilities.

TheSteve- you can declare bankruptcy too

The fact is - the NewGM is a different company as far as the law is concerned - and cannot be held liable for things the old company did. The can only beheld liable for things the new company did or failed to do.