The Wall Street Journal article of today (June 9, 2014), titled “Plaintiffs’ Lawyers Take Aim at GM for Recall” discusses and summarizes various facets of the litigation GM faces over of the ignition switch defect in light of the information in the report (funded by GM) released by former U.S. Attorney Anton Valukas. (previous posts regarding this ignition-switch defect can be seen in the “Auto Defects” category)
A couple of excerpts:
Some legal experts said GM could face an unusually long, steep and costly fight in the wake of the 315-page, company-funded report by former U.S. Attorney Anton Valukas. “This is a big case, and it could be enormously expensive for GM,” said Elizabeth Burch, a University of Georgia law professor.
Ms. Barra said the report demonstrated a “pattern of incompetence and neglect” in the auto maker’s 11-year failure to recall cars equipped with a defective ignition switch. Mr. Valukas said the company’s “search for root cause became a basis for doing nothing to resolve the problem for years.”
GM lawyers are trying to use the auto maker’s bankruptcy in 2009 to insulate the company from depreciation-related claims before then. Plaintiffs’ lawyers claim that would violate constitutional due-process rights, since GM allegedly knew about the ignition-switch problems but kept them secret for years.
U.S. Bankruptcy Judge Robert Gerber in New York is expected to rule by the end of summer.
Additional details can be seen in the Wall Street Journal article mentioned above.
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