General Motors Saved From Pre-Bankruptcy Ignition Lawsuits
Per a bankruptcy court ruling Wednesday, General Motors won’t be on the hook for pre-bankruptcy claims linked to the February 2014 ignition recall.
Reuters reports U.S. Bankruptcy Court Judge Robert Gerber ruled that plaintiffs seeking damages from GM involving claims made prior to the automaker’s 2009 exit from bankruptcy would have to sue “Old GM” for said damages. Though the claims come to $32 billion, Old GM’s assets in October 2014 totaled around $9.25 billion, a recovery of 29 cents on the dollar.
Gerber added that economic-loss plaintiffs could bring their claims against “New GM” based on the automaker’s behavior since leaving bankruptcy, and would certify the case for direct review by the 2nd U.S. Circuit Court of Appeals. He also said there were due process failures involved in GM’s exit, but that those failures weren’t enough to become violation-level issues due to lack of evidence by plaintiffs demonstrating that they were denied their day in court because they did not receive notice in time.
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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