General Motors protected from Billions of Dollars in Death and Injury Claims

According to a federal judge ruling, a 2009 bankruptcy order protects General Motors (GM) from billions of dollars in death and injury claims over defective ignition switches in older small cars.

Judge Robert Gerber ruled that plaintiffs who claim a loss in the value of their cars can still take legal action against General Motors Co. Back in 2009, Gerber enabled new GM to come out from bankruptcy protection free from liabilities of the company before bankruptcy. Recently, the plaintiffs said that GM misled the court six years ago as it knew about but unsuccessful to disclose the ignition switch problem.

The switches cause cars to stall surprisingly and are tied to minimum 84 deaths. Lawyers for plaintiffs in over 140 lawsuits had argued that their clients never got an opportunity to dispute the bankruptcy order and also were never informed of the bankruptcy as GM concealed the defective switches.

The new GM said that when it acquired assets from old GM, it received them 'free and clear' of liabilities before the bankruptcy. Texas attorney Robert Hilliard, who represents many wrongful death and injury plaintiffs in lawsuits against GM, said that the ruling discontinues court options for victims in crashes that took place before GM left bankruptcy protection in July of 2009.

"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", said Hilliard. The majority of the cars with faulty switches were sold before new GM left bankruptcy protection and several of the crashes took place before the new company was created.