Simien & Simien, LLC

CALL US TOLL FREE

(800) 374-8422

Click To Call

GM Urges Judge to Block Ignition Claim Lawsuits

On Nov. 6, General Motors Co. (GM) urged a judge to reject lawsuits demanding $10 billion for diminished value claims filed on behalf of consumers whose vehicles were recalled this year for ignition-switch defects and more.

According to the auto manufacturer, the company should not be held liable for vehicles that were built and sold before the company filed for bankruptcy in 2009. GM claims that their bankruptcy shielded "new" GM from "old" GM's obligations.

Federal Judge Robert Gerber intends to hold a hearing on Jan. 26, 2015 and then make a decision approximately 30 days after the hearing. If Gerber sides with GM, consumers suing over the diminished value of their GM vehicle may not receive any compensation. However, if the judge sides with consumers, General Motors could be left with a $2 billion tab.

Although the automaker has started to settle claims for drivers and passengers injured in auto accidents that involved their recalled vehicles, the company intends to fight all other lawsuits. About 130 diminished value lawsuits against General Motors have been combined into two class actions in the U.S. District Court in Manhattan. The groups are split between vehicles manufactured before the bankruptcy and those built after it.

Gerber has said that if he determines that he was misled about GM's knowledge of the defects or decides that the company knew enough to warn consumers, the bankruptcy protection could be terminated. If such a decision is made, GM could be subjected to even more lawsuits.

Additionally, new information has been disclosed revealing that General Motors ordered 500,000 replacement ignition switches to fix Chevrolet Cobalts and other small cars almost two months before they alerted federal safety regulators of the problem. Emails exchanged by a GM contract worker and Delphi Automotive, the ignition-switch supplier, indicate that GM placed an "urgent" order of replacement switches on Dec. 18, 2013.

If you or someone you love has been injured due to a defective General Motors vehicle, a Baton Rouge personal injury lawyer at Simien & Simien can help you determine what your legal options are.

For a free case review, call us at (800) 374-8422 or fill out our online contact form.

No Comments

Leave a comment
Comment Information
FindLaw Network
EMAIL US FOR A RESPONSE

Free Case Evaluation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

If you are looking for a law firm that has knowledge and experience, you will find it with Simien & Simien, LLC.

Free Case Evaluation

OUR OFFICES

Baton Rouge
7908 Wrenwood Blvd
Baton Rouge, LA 70809

Toll Free: 800-374-8422
Phone: 225-224-2222
Fax: 225-932-9286
Map & Directions

Lake Charles
Capital One Tower
Suite 1270
One Lakeshore Dr.
Lake Charles, LA 70629

Toll Free: 800-374-8422
Phone: 337-436-2121
Map & Directions

New Iberia
424 West Main St
New Iberia, LA 70560

Toll Free: 800-374-8422
Phone: 337-551-4242
Map & Directions

Houston Office
3730 Kirby Drive
Suite 1200
Houston, TX 77098

Toll Free: 800-374-8422
Map & Directions

New Orleans Office
1615 Poydras Street
Suite 900
New Orleans, LA 70112

Toll Free: 800-374-8422
Map & Directions

Nationwide (800) 374-8422