There has been little news recently about the ignition switch recall that affected millions of vehicles across the United States last year. However, it is expected that lawsuits will continue to be filed against the automaker as more injuries and deaths are determined to be caused by the defect.
In fact, Kenneth Feinberg, the attorney hired by General Motors to administer claims lodged against the company recently announced that the death toll attributable to the defect has risen. Last week, Mr. Feinberg announced that 80 people had been killed in accidents caused by the ignition switch defect. This week, that number increased to 84.
Nevertheless, there are scores of lawsuits that will not be allowed to continue because of a federal district court ruling that the 2009 bankruptcy essentially discharged claims that arose before the company emerged from Chapter 11 bankruptcy in July 2009. Essentially, the court ruled that the current company purchased assets from the former entity “free and clear” of legal liabilities, which included a number of defective products lawsuits.
Lawyers who represented clients in such lawsuits were deeply disappointed that their claims basically were turned to dust. One lawyer explained that his clients would never get justice while General Motors continues to make billions.
In the meantime, products liability suits that arose after the bankruptcy were still allowed to continue, along with claims that the mass recalls caused owners car values to fall dramatically. General Motors has reportedly set aside $400 million to compensate owners for ignition switch defect claims.
Recent Articles
When a Trucking Company Is Liable Beyond the Driver After a Pennsylvania Crash
Given the sheer mass of a commercial truck, you may suffer debilitating injuries in a large truck crash. If you...
Learn MoreHow Multi-Vehicle Highway Accidents Change Personal Injury Case Strategy
A multi-vehicle accident occurs when three or more drivers are involved in a crash. The first rear-end collision acts as...
Learn MoreWhy Serious Injury Cases Often Require Multiple Insurance Policy Claims
If you sustain serious injuries in a crash, your medical bills and lost wages may exceed the limits on a...
Learn More