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GM Files Motion to Block Ignition Recall Lawsuits
General Motors Co. has asked a U.S. bankruptcy court in New York City to enforce a covenant of its emergence from bankruptcy in 2009 that blocks lawsuits stemming from product liabilities incurred earlier by "old" GM.
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General Motors Co. has asked a U.S. bankruptcy court in New York City to enforce a covenant of its emergence from bankruptcy in 2009 that blocks lawsuits stemming from product liabilities incurred earlier by "old" GM. The company said last week it intended to file such a motion.
Earlier this week plaintiffs filed a proposed class-action lawsuit asking for an order that would prohibit GM from using its bankruptcy as a shield. The lawsuit argues that GM fraudulently concealed its knowledge of the defect and thus is not entitled to protection.
GM's filing seeks to dismiss dozens of current and potential future lawsuits over its belated recall in February of 2.6 million vehicles with faulty fix ignition switches. GM has acknowledged it knew of the defective components, which have been linked to 13 fatalities, more than a decade ago. The company's motion says any such lawsuits should be directed to the remains of old GM.
GM reiterates that it will address "civil and legal obligations" related to injuries associated with the recalled vehicles. The company is awaiting advice from former U.S. Dept. of Justice lawyer Kenneth Feinberg about how to handle such compensation.
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