The Second Circuit Court of Appeals recently released an opinion that will allow several tort claims against General Motors related to a faulty ignition switch to proceed. According to a New York Times article discussing the recent opinion, the ruling stands in the face of a 2009 bankruptcy court ruling, which prevented claims against GM from being asserted against the company that was created in the debt restructuring process. The appellate court ruled that the broad bar on future claims against the successor organization to the “old GM” did not apply to claims based on the defective ignition switches that were concealed by the previous company in anticipation of their bankruptcy restructuring.
Defective Ignition Switches in Millions of GM Vehicles Have Endangered the Public
The product liability lawsuits that have been filed against GM over the defective ignition switches allege that the manufacturer knowingly included the defective and dangerous equipment on their vehicles for years after they discovered the problem, and they even attempted to conceal evidence of their knowledge of the faulty equipment. The recall, which has now been expanded to include over 11 million vehicles in several General Motors make and model lines, is related to an issue with the ignition switch on the vehicles.
The ignitions on the affected vehicles may unexpectedly switch into the “off” position, deactivating important safety features on the vehicles, including power steering and airbags. The defective part has been linked to at least 124 deaths and 275 injuries. General Motors has already paid over $2 billion in criminal and civil penalties and settlements related to the issue, and the company expects to pay more in settlements as the plaintiff class expands with additional recalls.
South Florida Personal Injury Lawyers Blog

