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GM Plaintiffs Struggle to Revive $10 Billion Lawsuit
General Motors Co. customers encountered a skeptical judge today as they attempted to resuscitate a lawsuit claiming $10 billion in lost resale value for some 27 million cars recalled last year.
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General Motors Co. customers encountered a skeptical judge today as they attempted to resuscitate a lawsuit claiming $10 billion in lost resale value for some 27 million cars recalled last year.
Attorneys began arguing their case for compensation earlier today before U.S. bankruptcy judge Robert Gerber.
Gerber ruled in 2009 during GM's restructuring that the current company is not liable for defects in cars made by "old GM." The company contends that Gerber should retain the shield. Plaintiffs say GM should pay because it knew of defects especially the 2.6 million faulty ignition switches it belatedly recalled a year ago before its bankruptcy but hid the problem from the judge.
Gerber challenged plaintiffs' attorneys to prove a GM executive had withheld such information in court. But he also said he might reassess the terms of his original shield order if due process was violated. Gerber described himself as concerned of depicting his ruling as an unqualified "get-out-of-jail-free" card.
Gerber also asked plaintiffs' attorneys why he should grant plaintiffs relief for lower resale values when he has already denied requests to compensate victims killed or injured by faulty components in old-GM vehicles.
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