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GM Asks for Protection from Lawsuits

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Lawsuits filed against General Motors are growing across the country. On April 11, 2014, the automaker requested protection from a federal bankruptcy judge for lawsuits related to “liabilities for crashes and other product liability claims,” before it filed for bankruptcy in 2009.

The company vowed to “seek an order” against “plaintiffs in all related actions to cease and desist from further prosecuting against ‘New GM,’ or otherwise pursuing any and all claims barred by the provisions” of the bankruptcy.

GM is facing lawsuits in 19 U.S. district courts including: Texas, Pennsylvania, New York, Missouri, Michigan, Louisiana, Illinois, Georgia, Florida, Colorado, California, Arizona, and Alabama.

GM Faces Fines Following Recall Delay

GM’s recall now includes 2.6 million vehicles. GM issued its first recall in February 2014 which covered Chevrolet Cobalts and Pontiac G5 compact cars model years 2005-2007 in North America.

GM allegedly knew about the faulty ignition switch as early as 2001. It was found that heavy items placed on the key ring could knock the car out of drive, consequently turning off several electrical components in the car, including the air bags. So far, 13 deaths have been reportedly tied to this recall.

The NHTSA announced General Motors would be fined $7000 a day until it gives complete answers to questions from the agency.

Recalled GM Vehicles Need to be Repaired

General Motors vowed to fix the recalled vehicles starting the week of April 7, 2014.

GM is urging consumers to get their recalled vehicles fixed. According to an article on CBS MoneyWatch, about one-third of Americans do not get their recalled vehicles fixed. It found that some consumers are unfazed by the headlines in the news, and some are just simply unaware of the recall. Another potential issue is if recalled models are resold and purchasers of the resold models are not aware of its issues.

More Recalls for GM?

A consumer group sent a letter to the NHTSA asking the agency to investigate an apparent airbag failure in Chevrolet Impala models. This could lead to additional recalls for GM.

If you or a loved one own a recalled GM vehicle and you were involved in an auto accident you should contact an attorney today for a free consultation. You could be entitled to compensation.

2 Comments

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  1. jc says:
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    I thought that after bankruptcy, all claims have to go thru the bankruptcy court and that creditors are ranked in order of priority and paid accordingly. Why shouldn’t plaintiffs from auto accidents pre-bankruptcy be treated the same as other creditors?

  2. RMS says:
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    I bought a 2010 Chevrolet Malibu. After 65,000 miles, the engine overheated and cracked the head. The dealer couldn’t, or wouldn’t, explain what caused this problem. GM has had a history of problems related to overheating.