(Bloomberg) -- A federal appeals court upended General Motors Co.’s plan to shed hundreds of customer lawsuits over ignition switch defects, ruling that such litigation was not automatically barred by the company’s 2009 bankruptcy sale to a new corporate entity.
The deal that turned “Old GM” into “New GM” to save the storied company from financial ruin doesn’t prevent pre-sale lawsuits over the deadly switch or claims by people who bought used GM cars, the appeals court in Manhattan said Wednesday. Those customers didn’t have a chance to challenge the transaction before it was approved by the U.S. Bankruptcy Court in New York seven years ago, the court said.
Recommended For You
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
© 2025 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.
