GM Is Shielded From Some Ignition-Switch Suits, Ruling Finds
On Wednesday, a U.S. bankruptcy judge ruled in favor of General Motors (GM) stating that the car maker will not be facing any legal actions with regards to the defect of its ignition-switches that have been blamed for the deaths of more than 200 people as well as serious injuries.
The plaintiffs in the lawsuit indicated that GM was at fault due to the fact that it failed to clearly disclose that their cars had defects with the ignition-switch. General Motors argued that it was protected from any claims on vehicles which pre-dated its exit from the chapter 11 bankruptcy back in 2009.
The decision by Robert Gerber, a U.S. bankruptcy judge, protects GM from lawsuits which would have seen the car maker pay billions of dollars in liability charges. In addition to that the ruling also saved GM the cost that it would have incurred while defending itself against the numerous lawsuits that it would have faced.
Experts have indicated that Wednesday’s ruling is huge plus for GM which is working on moving beyond the safety crisis which erupted back in 2014.
The U.S. bankruptcy judge stated that he would be certifying the case for direct review by U.S.’s second Circuit Court of Appeals.
In a statement that was issued out by General Motors following the ruling, the U.S. based car maker stated that, “Judge Gerber properly concluded that claims based on Old GM's conduct are barred, and that the Sale Order and Injunction will be enforced for such purposes.
With respect to any claims that were not expressly barred, Judge Gerber's decision doesn't establish any liability against GM and the plaintiffs still must prove the merits of their claims in the [multi-district litigation] proceeding.”