Court rules GM is shielded from death claims by bankruptcy

Apr 16, 2015 6:55 AM by Cheryl Wengren

DETROIT (AP) - A federal bankruptcy judge has ruled that General Motors is shielded from death and injury claims in crashes that happened before it emerged from bankruptcy protection.

But Judge Robert Gerber ruled that under narrow circumstances, some plaintiffs who sued over a loss to the value of their cars due to faulty ignition switches can file claims against the company for actions after it left bankruptcy protection in 2009.

The ruling is a victory for GM. One plaintiffs' attorney said the decision shields GM from $7 billion to $10 billion in potential liabilities from lawsuits.

Lawyers for plaintiffs in about 140 class-action lawsuits had argued that their clients never got a chance to dispute the bankruptcy order because GM concealed the defective ignition switches.


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