Michigan
Related: About this forumLost appeal could cost GM billions
General Motors Co. could be exposed to billions of dollars in additional claims related to its defective ignition switches after the U.S. Supreme Court turned away an appeal from the company seeking to block hundreds of lawsuits from proceeding.
The justices on Monday left in place a lower court ruling that said the automakers 2009 bankruptcy did not shield it from liability in cases involving death and injuries, or for economic loss because the value of the cars plunged. The court did not comment on its reasoning for rejecting to hear the case.
That could open up the company to expensive and costly damages, which plaintiffs lawyers have estimated could be as much as $10 billion. GM has already paid $2.5 billion in legal costs and settlements related to the ignition switch defect, including a $900 million fine to the Justice Department and about $600 million as part of a compensation program to families of victims killed or those injured in accidents related to the faulty ignition switches. Those who settled in the compensation program cant file another suit against GM.
The ignition switch defect, which allowed the key to inadvertently move to the off position and disable air bags, ultimately was tied to 124 deaths and hundreds of injuries. It led to a 2014 recall of nearly 2.59 million older cars.
Read more: http://www.detroitnews.com/story/business/autos/general-motors/2017/04/24/gm-ignition-switch/100837116/
John1956PA
(2,657 posts)I have been wondering how it would eventually play out.
I am glad that the U.S. Supreme Court did not side with big business interests, at least in this case.
Thanks for posting.
TexasTowelie
(112,453 posts)Yes, it will be interesting to see whether they will raise the issue of bankruptcy again since they have become profitable.
Ohioblue22
(1,430 posts)it would haver been 5-4 for gm