General Motors has requested US Bankruptcy Judge Robert Gerber to reject the $10bn lawsuit by car owners for the lost value of millions of cars recalled this year due to faulty ignition-switch.
A 2008 Chevrolet HHR owner Jesse Salazar III had filed a case against General Motors claiming that it will have to pay for the depressed value of the car, after it was recalled due to faulty ignition switch.
General Motors went into bankruptcy which shielded the newly formed company from many of its previous obligations, but still hundreds of lawsuits have been filed on behalf of GM customers claiming depreciation in vehicle value.
If US Bankruptcy Judge Robert Gerber rules in favor of Salazar then GM may have to up to $10bn in damages for pre-GM-bankruptcy cars having lost value due to an ignition switch recall, reported Bloomberg.
GM recalled around 2.2 million vehicles in the U.S due to issues related to faulty ignition switch, and it has already set up $600 m fund to compensate the families of those who died due to the issue and the ones who suffered serious injuries.
