(Bloomberg) — General Motors Co. customers demanding compensation for the eroded value of recalled Cobalts and Ions will hear today how their lawyers plan to fight for the right to sue the carmaker.
In the Manhattan court where the U.S. financed the automaker's turnaround five years ago, U.S. Bankruptcy Judge Robert Gerber will probably hear that rulings he made freeing GM from responsibility for decreased car values don't apply to owners of vehicles recalled over faulty ignition switches. The automaker never gave those car buyers a chance to have their say in his court during its 2009 bankruptcy, their lawyers contend.
GM knew about the defective switches and broke the rules by not informing customers, the lawyers have said. For its part, GM wants Gerber to affirm his earlier rulings that it's protected from liabilities after its reorganization.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
