Mexican Media Brands
Investors Claim GM Directors are Liable for Ignition Switch Claims
More than a dozen current and former General Motors Co. board members should be held accountable for the company's delayed recall of 2.6 million faulty ignition switches last year, several pension funds argue.
#legal
Share
More than a dozen current and former General Motors Co. board members should be held accountable for the company's delayed recall of 2.6 million faulty ignition switches last year, several pension funds argue.
Their lawyer told a Delaware Chancery Court judge on Tuesday the GM board showed a "systemic failure to supervise that amounts to a conscious dereliction of duty" between 2010 and 2012, Bloomberg News reports.
The judge promises a quick ruling on the group's motion to allow its lawsuit to move forward. GM wants the case thrown out.
Bloomberg says the judge told the funds that a failed monitoring mechanism doesn't necessarily indicate a breach of the board's duties to shareholders. He says the investor lawsuit must show the board was consciously operating against shareholders' interest.
RELATED CONTENT
-
Tesla Faces Second Autopilot Fatality Lawsuit
Tesla Inc. has been sued for the second time in three months by families of drivers killed in crashes while using the company’s Autopilot semi-self-driving feature.
-
U.S. Lawsuit Says Bosch Conspired with VW on Cheater Diesels
A U.S. lawsuit claims Robert Bosch GmbH conspired with Volkswagen AG to equip diesel-powered vehicles with software to cheat emission tests.
-
The Law and Autonomous Cars
Features that enable your car to drive itself are coming to market now, but regulations to govern their performance have lagged, notes Jennifer Dukarski, an attorney with the Butzel Long law firm.