GM Asks Courts to Delay Ignition-Switch Lawsuits
General Motors Co. is asking federal district courts in California and Texas to delay considering lawsuits spawned by its belated recall of 2.6 million cars with defective ignition switches, Bloomberg News reports.
General Motors Co. is asking federal district courts in California and Texas to delay considering lawsuits spawned by its belated recall of 2.6 million cars with defective ignition switches, Bloomberg News reports.
GM faces about 36 such lawsuits. The company wants the courts to await a ruling by the U.S. Bankruptcy Court in New York City about a stipulation of its bankruptcy restructuring in 2009 that shields it from liabilities incurred by "old" GM.
The company says it intends to request the bankruptcy court to enforce the injunction against such lawsuits. Plaintiffs' lawyers say their aim is to hold new GM accountable for its post-bankruptcy delay in taking action to fix switches whose flaws it recognized 13 years ago.