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GM To Ask For Lawsuit Protection, Report
GM To Ask For Lawsuit Protection

GM To Ask For Lawsuit Protection, Report

General Motors is asking for lawsuit protection from legal claims involving issues before the company’s 2009 bankruptcy.

The company filed the motion in a Texas federal court Tuesday, specifically surrounding defective ignition switches that have led GM to recall more than 2-million cars.

The company has moved to ask a federal bankruptcy judge to dismiss any lawsuits related to the company before its 2009 bankruptcy restructuring. At the moment, on April 25 a hearing is set in the US Bankruptcy Court in New York to rule whether the court has jurisdiction in this case.

General Motors could face numerous liability claims in relation to the 2.6 million cars recalled in the defective ignition switch problem, which was related to at least 30 crashes and has so far claimed the lives of 13 persons.

“New GM did not assume the liabilities of Old GM,” the company said in the court filing.

The US automaker wants all the cases sent to the bankruptcy court – as the company says it faces at least 41 lawsuits in 19 US district courts, including Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Louisiana, Michigan, Missouri, New York, Pennsylvania and Texas. At the moment, a judicial panel is also debating whether to unite all claims into a single court for the first stages of the cases.


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