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Judge Dismisses Recall-Related Lawsuit Against GM Directors
A Chancery Court judge in Delaware has dismissed a lawsuit that claims General Motors Co. directors are personally liable for the cost of recalling some 2.6 million cars with defective ignition switches.
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A Chancery Court judge in Delaware has dismissed a lawsuit that claims General Motors Co. directors are personally liable for the cost of recalling some 2.6 million cars with defective ignition switches.
The complaint argues that board members failed to properly oversee GM operations. But Judge Sam Glassock ruled the shareholders failed to offer any proof that the directors acted in bad faith, consciously failed to monitor GM operations or deliberately ignored warning signs of a problem.
Three similar cases in Michigan have been pending the outcome of the Delaware case. GM says it hopes for a similar dismissal of those complaints.
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