Trade Resources Company News Urged Us Court to Bar Recall Related Economic Claim Lawsuits by GM

Urged Us Court to Bar Recall Related Economic Claim Lawsuits by GM

US-based vehicle maker General Motors (GM) has urged a local court to offer protection from certain lawsuits being filed against the company over a recall led by faulty ignition switches.

The company has been facing an increase in lawsuits for recalling the cars sold before its 2009 bankruptcy and has requested the court to bar cases, which are alleging purely economic damages.

According to reports, the company emerged from the 2009 bankruptcy as a new GM and requests the court that the cases should be imposed over the older firm present before the year.

The company said in a statement, "New GM's recall covenant does not create a basis for the plaintiffs to sue new GM for economic damages relating to a vehicle or part sold by old GM."

Complainants suing the company have also filed a proposed class action lawsuit in Manhattan bankruptcy court that requests an order to stop GM from using the bankruptcy protection against the lawsuits.

Earlier this year, GM has recalled about 2.6 million vehicles over the faulty ignition switch issue, which has reportedly claimed about 13 lives.

 

Source: http://www.automotive-business-review.com/news/gm-urges-us-court-to-bar-recall-related-economic-claim-lawsuits-230414-4219246
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GM Urges US Court to Bar Recall Related Economic Claim Lawsuits
Topics: Auto Parts