In this case, GM thinks it's the victim and is asking for protection from lawsuits. Poor GM.
GM Seeks to Shield Itself From Ignition Lawsuits
General Motors Co filed a motion in a U.S. bankruptcy court to enforce a bar on lawsuits
related to ignition defects in cars sold before its 2009 bankruptcy as it fights a class action lawsuit that seeks to set aside the restriction.
The
plaintiffs also filed a class action lawsuit on Monday, seeking an
order declaring that GM cannot use the bankruptcy protection to absolve
itself from liabilities.
The faulty ignition switch has been linked to at least 13 deaths and the recall of 2.6 million GM vehicles.
GM
emerged from bankruptcy protection in 2009 as a different legal entity
than the so-called old GM. Under those terms, the "new GM" shed
liability for incidents predating its exit from bankruptcy, and any
lawsuit related to pre-bankruptcy issues must be brought against what
remains of old GM.
"New GM's
recall covenant does not create a basis for the plaintiffs to sue new GM
for economic damages relating to a vehicle or part sold by old GM," the
company argued in a filing on Monday in the Bankruptcy Court for the
Southern District of New York.
In
its filing, GM asked the court to direct the plaintiffs to cease and
desist from further prosecuting against new GM claims that are barred by
the bankruptcy sale order and the injunction, and also dismiss the
earlier claims.
The plaintiffs
have claimed they bought or leased vehicles that had the defective
ignition switch and accused GM of fraudulently concealing its knowledge
of the defect, saying that as a result, it was not entitled to
protection from liability.
GM and lawyers for the plaintiffs were not immediately available for comment.
-- Reuters
