The Norman Transcript

April 23, 2014

GM, lawyers fight over protections


The Associated Press

DETROIT — General Motors Co. and a battalion of trial lawyers are preparing for an epic court fight over whether GM is liable for the sins of its corporate past.

The company is asking a U.S. bankruptcy court to shield it from legal claims for actions that took place before the company’s 2009 bankruptcy.

But lawyers who are suing GM say it shouldn’t get the usual benefits of bankruptcy protection because it concealed a deadly ignition switch problem when the court was making bankruptcy decisions.

They also say the company’s motion is part of a broader strategy to force settlements in dozens of lawsuits alleging the ignition switches caused deaths and injuries.

Late Monday, GM filed a motion in New York asking the court to bar claims that GM small cars lost value because of the ignition switch problem, which has led to the recall of 2.6 million older small cars worldwide. The company has admitted knowing about the problem for more than a decade, yet it failed to start recalling the cars until February to replace the defective switches.

The faulty switches, which GM said have caused at least 13 deaths, can move unexpectedly from the “run” position to “accessory” or “off,” shutting down the engine and knocking out power-assisted steering and brakes. If that happens, steering can become difficult and surprised drivers can lose control of their cars and crash. If the engine is off, the air bags won’t inflate.

—AP

Breaking news, severe weather alerts, AMBER alerts, sports scores from The Norman Transcript are available as text messages right to your phone or mobile device. You decide which type of alerts you want to receive. Find out more or to signup, click here.