GM shielded from many ignition-switch lawsuits, bankruptcy judge rules
Source: Los Angeles Times
General Motors is shielded from claims over deaths and other damages that occurred in crashes before the automaker’s 2009 restructuring in Bankruptcy Court, a federal judge ruled Wednesday, stopping more than 100 cases that center on faulty ignition switches and other claims.
However, people injured in a vehicle built before the bankruptcy but in a crash after the new GM was established can still file a lawsuit against the company, the ruling by Judge Robert Gerber says. Those killed or hurt before the restructuring cannot claim damages from the current company.
"This ruling padlocks the courthouse doors," Bob Hilliard, a Texas attorney representing ignition-switch victims and their families, said in a statement. "Hundreds of victims and their families will go to bed tonight forever deprived of justice. GM, bathing in billions, may now turn its back on the dead and injured, worry free."
... The ruling also blocked lawsuits from people who hoped to claim economic losses by, essentially, arguing that the recall scandal had damaged the value of their GM cars.
Read more: http://www.latimes.com/business/autos/la-fi-hy-gm-ignition-bankruptcy-20150415-story.html
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