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Texas Litigants Agree to Suspend GM Lawsuit Till Autumn
U.S. bankruptcy judge Robert Gerber has persuaded a group of General Motors Co. customers in Texas to put off a lawsuit against the company until he can determine if their claims have merit, Bloomberg News reports.
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U.S. bankruptcy judge Robert Gerber has persuaded a group of General Motors Co. customers in Texas to put off a lawsuit against the company until he can determine if their claims have merit, Bloomberg News reports.
The group is among at least 79 lawsuits filed in the U.S. that say the value of their GM cars fell when they were recalled in February to replace a defective ignition switch linked to 13 fatalities. The owners want GM to pay them as much as $10 billion to help them buy new vehicles.
GM argues that most of the claims should be rejected because Gerber, who handled the company's bankruptcy in 2009, specifically shielded "new" GM from liabilities stemming from transgressions committed by "old" GM. The judge told plaintiffs to give him until at least September to decide on the validity of their complaints or explain why he shouldn't force them to wait.
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