U.S. appeals court revives some claims over GM ignition switch

NEW YORK

Reuters reports the 2nd U.S. Circuit Court of Appeals in Manhattan has said that General Motors must face some claims from certain groups of car owners affected by a defective ignition switch prior to the automaker’s 2009 bankruptcy.

U.S. Bankruptcy Judge Robert Gerber, now retired, ruled in 2015 that New GM was shielded from liability over Old GM’s pre-bankruptcy actions, but he allowed some “independent” claims based solely on New GM’s conduct to proceed.

In 2014, GM recalled 2.6 million vehicles, including the Lordstown-built Chevrolet Cobalt, for faulty ignition switches. The ignition switch caused injuries and deaths.