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GM Recall

GM to Seek Court Protection Against Faulty Ignition Lawsuits

General Motors, which is recalling 2.6 million cars, says it will ask a federal bankruptcy court to bar plaintiffs from proceeding with lawsuits against the automaker for claims related to any actions before it filed for bankruptcy in 2009.

The plaintiffs have alleged that they bought or leased vehicles that contained an ignition switch defect. The defect has been linked to the deaths of at least 13 people and resulted in the recall of 2.6 million GM vehicles.

General Motors says it will seek court protection to prevent lawsuits against it before 2009 when it filed for bankruptcy
A group of Chevrolet Camaro cars at a car dealership in Los Angeles. General Motors says it will seek court protection to prevent lawsuits against it before 2009 when it filed for bankruptcy MARIO ANZUONI / Reuters

In a filing with U.S. District Court for the Northern District of California, GM asked for a stay on litigation related to ignition claims until the court decides on a motion to consolidate the claims and the bankruptcy court rules on whether the claims violate GM's 2009 bankruptcy sale order.

GM said it would file a motion in the Bankruptcy Court for the Southern District of New York to enforce an injunction contained in its sale order, which the company said bars plaintiffs from suing the reorganized company for any claims related to the predecessor company.

- Reuters