GM wants customers to agree to suspend suits within 10 days

Comments Email

Bloomberg News report

DETROIT (May 7, 2014) — General Motors Co. told a bankruptcy judge recently that car owners should agree “voluntarily” within 10 days to suspend 59 lawsuits over ignition-switch defects pending his decision on whether all their demands are allowable.

The lawsuits were already stopped last month by federal judges in Texas and California while GM sought a ruling from U.S. Bankruptcy Judge Robert Gerber in Manhattan on whether the claims were permitted under the terms of the car maker’s 2009 reorganization. The car owners are seeking as much as $10 billion for the lost value of their vehicles.

Some have asked Judge Gerber for a quick decision on whether they can keep suing on grounds that he won’t consider when he assesses the scope of his court orders in the bankruptcy, which shielded GM from some legal actions.

Customers who don’t agree to the halt that GM is seeking should be required to file papers in court by May 25 explaining why the judge shouldn’t force them to, the company said in a April 30 bankruptcy court filing.

The auto maker asked Judge Gerber to put the stay proposal at the top of the agenda for a conference May 2 on how the case should proceed.

Some GM customers also want permission to immediately seek enough information from the company to ground the 2.59 million cars it has recalled over the faulty ignition switches, which have been linked to 13 deaths.

This report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.

More Polls>

TB Reader Poll

Previous | Published April 23, 2015

Do so-called “Religious Freedom” laws in place in some states impact how companies do business, and do you support them?

I support them and don’t think they have any effect on how I do business
51%
I don’t support them; they have a negative effect on businesses
5%
I think more research should be done about these laws’ impact before they’re enacted
16%
They’re horrible, an infringement on the rights of certain groups or individuals and shouldn’t be the law anywhere
28%

Explore the tire

Pirelli’s newest UHP tire – the P Zero™ All Season Plus