GM is shielded from some ignition-switch suits, ruling finds

Reuters ^ | 15 April 2015 | Jessica Dye and Nick Brown

[Theoria]

General Motors Co will not have to face dozens of lawsuits accusing it of concealing an ignition-switch defect that has been blamed for more than 200 deaths and serious injuries, a U.S. bankruptcy judge ruled on Wednesday.

Plaintiffs in the lawsuits said the company violated their constitutional rights by failing to disclose the defect, while GM had argued it was protected from claims on vehicles pre-dating its 2009 exit from Chapter 11 bankruptcy.

The decision by U.S. Bankruptcy Judge Robert Gerber means GM may avoid potentially billions of dollars in liability, as well as the cost of defending those lawsuits, although claims arising after its bankruptcy will not be affected. The plaintiffs will have to file their claims instead against the financially limited "Old GM," the shell company comprised of bad assets GM shed in bankruptcy.

The claims center on a faulty ignition switch in some older vehicle models that could slip out of position, cutting power to brakes, steering and airbags. Last year GM recalled 2.6 million vehicles with the switch, and later issued a series of additional recalls for other safety issues. The defect was linked to nearly 160 injuries and 84 deaths.

The claims mostly allege loss in vehicle value, as GM has already agreed to compensate most injury and death claimants through a separate fund. However, some personal injury and death claimants who were not compensated through the fund are among those now suing the company.

[Theoria]

'The plaintiffs will have to file their claims instead against the financially limited "Old GM," the shell company comprised of bad assets GM shed in bankruptcy.'

Suckers.

[Vaquero]

Gummint Motors. zer0fied crap cars

[kiryandil]

See? "Crony capitalism" is a "good thing", well, for GM.

It's good to be pals with the Muslim-In-Chief. LOL! :)

[Wolfie]

Tort Reform Now!

[TomGuy]

I have notice some newer vehicles have advanced from keyed ignition switches to push-buttons for ignition.

Reminds me of push-button ignitions on some vehicles from the 1940s and 1950s.

==

Of course, I consider ‘texting’ a giant step backward, too.

[kiryandil]

I wanna be a Crony!:

click on the YouTube vid to find out why it's GOOD to be a Crony...

[Timber Rattler]

Flashback:

U.S. will guarantee GM, Chrysler warranties, Obama says

[stephenjohnbanker]

” ignition-switch defect that has been blamed for more than 200 deaths and serious injuries, “

“Blamed” ain’t proven.

Now the plaintiffs will need a different way to get into Beverly Hills.

[VTenigma]

Anarcho-tyranny at it’s finest!

[Red in Blue PA]

This is absolute BS!

I had one of these crap cars and the ignition would stall the car at the worst of times. One time was at a very busy intersection; I was lucky I was not injured or killed.

[Red in Blue PA]

“Blamed” ain’t proven.

I had one of those cars and this is proven to me. The car stalled numerous times at the most inopportune of times. And nobody could diagnose it.....here we find out they knew but buried the data concerning the ignition switches.

[Leaning Right]

Yet another reason to never buy a GM vehicle.

[WayneS]

Plaintiffs in the lawsuits said the company violated their constitutional rights by failing to disclose the defect...

If we were following the original intent of the constitution then only the government would be able to violate someone's constitutional rights.

And GM was not a government agency at the time this occurred.

[blueunicorn6]

Fine. Then take away all their buildings and equipment.

They get to keep all that, but not the responsibility and debt?

Bullshit.

We are run like fascist Italy. Where the hell is the press on this?

Bought. Bought. They should be hung.

[2banana]

Take the money out of the UAW political war chest and their pensions

[TwelveOfTwenty]

Yet another reason to never buy a GM vehicle.

Not that I needed another reason.

[griswold3]

although claims arising AFTER its bankruptcy will not be affected’

How could this be? Remember when the President “saved” General Motors and Mitt Romney said “let Detroit go bankrupt” was a laughing matter?

I cannot wrap get myself to accept such contradiction in reality. How do the “Progressives” do it?

[NoKoolAidforMe]

And yet Obama went after Toyota mercilessly and extorted about a billion dollars from them as a settlement. The evidence against Toyota was not as compelling as the evidence against GM.

I will never buy a GM or a Chrysler.

[ilovesarah2012]

This is outrageous.

[catnipman]

Well, that’s pretty handy! Knowingly slaughter 100s, declare bankruptcy to avoid restitution, and then keep on doing business as usual! Doesn’t get much better than that does it, esp. for Obama fellow travelers! Makes Irish Travelers look like pikers.