GM returns to bankruptcy court to stop recent lawsuits

GM returns to bankruptcy court to stop recent lawsuits

When GM finalized their hasty bankruptcy claim in 2009, the transition to the “new” company included an increasingly important shield. While new GM accepts responsibility for incidents in vehicles created before 2009, the automaker is not accountable for any accidents before the filing.

In an attempt to uphold the ruling, GM is headed back to court with Judge Robert Gerber, who oversaw the original bankruptcy filing. With more than 50 owners attempting to sue for loss of damage to their vehicles on top of the accident-related cases, GM is trying to stop all lawsuits where they aren’t legally responsible.

GM’s case is strong based on the original ruling, but attorneys from several states prepared information in an attempt to prove the automaker was fraudulent while filing in 2009 because they intentionally hid information about the faulty ignition switches.

When Gerber arranged the meeting in late April, he said no substantial decisions will be made at this time nor will he tolerate repetitive chatter. GM is legally correct, but if the lawyers involved prove conscious concealment and fraud from the company, things could become much worse for one of America’s largest vehicle manufacturers.

The start of May also introduced another recall for GM, this time including Cadillacs, Chevrolets and GMC models for different issues. It appears that after fumbling through problems in the past, they’re trying to avoid similar situations in the future with the recent onslaught of additional recalls.

Here is the list of vehicles recalled for defective ignition switches and lock cylinders:

  • Chevrolet Cobalt, 2005 to 2010
  • Chevrolet HHR, 2006 to 2011
  • Saturn Ion, 2003 to 2007
  • Saturn Sky, 2007-2010
  • Pontiac Solstice, 2006 to 2010
  • Pontiac G5, 2007 to 2010

Do you or someone you love drive one of the cars listed? Have you experienced any difficulty with your engine shutting off while in motion that led to an accident and possibly a serious injury? Let us know! We may be able to help.

References

Bruce, C. (2014). GM recalling 54K Cadillac SRX, HD pickup models. AutoBlog. [Link]

Reuters. (2014). GM’s fate in hands of bankruptcy judge-again. Chicago Tribune. [Link]

Sandler, L. (2014). GM takes recall fight to familiar turf: Bankruptcy court. Bloomberg. [Link]

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