General Motors' Bankruptcy Protections Could Narrow Pending Ruling
Should a federal judge decide General Motors acted in the wrong during bankruptcy proceedings, the automaker may see its protections considerably narrowed.
According to Reuters, the point of contention is whether or not GM purposely hid the defects linked to the February 2014 ignition switch recall during proceedings in 2009. Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York said that he would reassess the terms that carved Old GM from New GM if the latter violated due process, allowing affected consumers to go after the automaker for defects it knew of after the exit from bankruptcy.
Gerber’s potential decision won’t sit well with those filing lawsuits over issues of lost value, injury and death as a result of those defects. The plaintiffs are asking for GM to pay compensation in the billions of dollars for its pre-bankruptcy actions, which a modified sale order would mitigate. Gerber is expected to make his decision sometime in the coming weeks at the earliest.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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