Attorneys Ask Court to Exclude GM Recall LawsuitsJune 25, 2014
Attorneys for General Motors said it would request that a U.S. court exclude GM recall lawsuits related to actions prior to the company’s 2009 bankruptcy. The company claims that the terms of its bankruptcy proceedings stated that it was immune to liability lawsuits stemming from incidents that occurred before 2009, which would include the GM recall lawsuits over faulty ignition switches in many mid-2000s-era models that are currently ongoing.
GM Recall Lawsuits and the “New” GM
The company filed the request in April for a stay on GM recall lawsuits related to a recall of vehicles with faulty ignition switches. According to the bankruptcy settlement, the company that emerged from the proceedings exists as a different entity from the company that installed the poorly-designed ignition switches that have been attributed to the deaths of at least 13 people. Attorneys for the company maintain that the “new” company should not be responsible for the GM recall lawsuits stemming from the defective ignition switch.
Defective Switches Lead to GM Recall Lawsuits
The GM recall lawsuits stem from several models that contained defective ignition switches, including the Chevrolet Cobalt, Saturn Ion and Pontiac G5s. The defects have been linked to at least 54 crashes and 13 deaths. The ignition switches inadvertently shut off due to the “switch detect plunger” failing to supply enough torque to keep the ignition system operational. Reports show that GM knew about this potential problem as far back as 2005. More than 2.6 million vehicles have been recalled, one of the largest vehicle recalls in U.S. history.
Senator: Bankruptcy Should Not Block GM Recall Lawsuits
U.S. Senator Richard Blumenthal (D-CT) stated that the courts should deny the company’s move to use the bankruptcy proceedings to block GM recall lawsuits. Senator Blumenthal released a statement that the move “demonstrate(s) clearly” the company’s intention to protect itself from legitimate claims. He also stated that the company “should simply do right by these victims” and create a compensation fund for those affected by the recall.
Compensation Fund and GM Recall Lawsuits
In an effort to forestall many GM recall lawsuits, the auto giant has established a compensation fund for those victims of accidents attributed to the defective ignition switches. GM CEO Mary Barra testified before Congress that the fund would compensate “those who lost loved ones or who suffered serious physical injury,” but would not cover economic losses, such as car repairs or lost wages.
Know Your Rights in a GM Recall Lawsuit
To find out how we can help you with a GM recall lawsuit, contact us today at 877-892-2797. Our friendly staff will ask a few questions about your case and connect you to a GM recall lawsuit attorney. You can also fill out the “Free Case Evaluation” form at the top of this page.