(Bloomberg) -- The U.S. Supreme Court cleared the way for potentially billions of dollars in legal claims against General Motors Co. over a deadly ignition-switch defect, turning away the company’s appeal in a clash connected to its 2009 bankruptcy sale.
The justices, without comment, left intact a federal appeals court ruling that said the accord, which turned “Old GM” into “New GM,” didn’t block lawsuits over accidents that happened before the sale or claims that the flaw caused vehicles to lose value.
Related: GM must defend igniton-switch suits affecting used cars
|Ignition flaw leaked to 124 deaths
The ignition flaw has been linked to at least 124 deaths and led to 2.59 million vehicle recalls. Plaintiffs’ lawyers have estimated that claims against the company may total as much as $10 billion.
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 asset-and-logo-licensing@alm.com. For more information visit Asset & Logo Licensing.