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Supreme Court: General Motors Can’t Use Bankruptcy To Avoid Lawsuits Over Deadly Ignition Defect

Posted By GMbeat on Articles

https://consumerist.com - The Supreme Court has denied General Motors’ legal efforts to use its 2009 bankruptcy to block lawsuits over injuries and financial losses related to the carmaker’s long-ignored ignition switch defect. When GM, with more than a little help from taxpayers, clawed its way out of bankruptcy in 2009, it did so with an understanding that the “New GM” had purchased all the old assets of pre-bankruptcy “Old GM,” under the condition that the new company would be “free and clear” from liability for claims against the old company. So the massive ignition recall presented a difficult question, in terms of which GM should be blamed.

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