Did General Motors conceal its ignition defect, resulting in at least 13 deaths so far, in 2009 when it filed for bankruptcy? Back then GM received close to $50 billion in tax payer money to stay in business. Lawyers are pressing the case that GM intentionally concealed that defect.
Yesterday, 4/21/2014, GM filed papers seeking to protect itself from suits related to the ignition switch recall, which the company has tied to at least 13 deaths. The plaintiff’s lawyers are making the point that GM should not be allowed to use the 2009 bankruptcy reorganization to protect itself from liability coming from their faulty ignition switch.
Some of the largest problems looming over GM from their recall are:
1. Government investigations
2. Criminal probe
3. Dozens of lawsuits
These exist because GM took a very long time to issue the recall.
Here’s the fine print on why GM is seeking protection from the above list: GM (“Old GM”) went bankrupt in 2009 and created a “New GM” company that purchased the valuable assets of the bankrupt Old GM. The liabilities of Old GM did not come to New GM and this was approved by the courts as being in the best interest of keeping the New GM in business and able to move the company forward.
GM's said in its filing Monday that it's seeking protection from suits alleging economic damages, not from those brought over accident deaths or injuries.
Entire Article (GM accused of hiding ignition flaws in 2009 bankruptcy)
The Forgotson Law Firm is one of Oklahoma City’s premier Chapter 7 and Chapter 13 bankruptcy firms. If you ever find yourself in the stress of considering bankruptcy, please call for your FREE initial consultation.
Forgotson Law
1230 S.W. 89th, Suite A
Oklahoma City, OK 73139
405-703-4567
Yesterday, 4/21/2014, GM filed papers seeking to protect itself from suits related to the ignition switch recall, which the company has tied to at least 13 deaths. The plaintiff’s lawyers are making the point that GM should not be allowed to use the 2009 bankruptcy reorganization to protect itself from liability coming from their faulty ignition switch.
Some of the largest problems looming over GM from their recall are:
1. Government investigations
2. Criminal probe
3. Dozens of lawsuits
These exist because GM took a very long time to issue the recall.
Here’s the fine print on why GM is seeking protection from the above list: GM (“Old GM”) went bankrupt in 2009 and created a “New GM” company that purchased the valuable assets of the bankrupt Old GM. The liabilities of Old GM did not come to New GM and this was approved by the courts as being in the best interest of keeping the New GM in business and able to move the company forward.
GM's said in its filing Monday that it's seeking protection from suits alleging economic damages, not from those brought over accident deaths or injuries.
Entire Article (GM accused of hiding ignition flaws in 2009 bankruptcy)
The Forgotson Law Firm is one of Oklahoma City’s premier Chapter 7 and Chapter 13 bankruptcy firms. If you ever find yourself in the stress of considering bankruptcy, please call for your FREE initial consultation.
Forgotson Law
1230 S.W. 89th, Suite A
Oklahoma City, OK 73139
405-703-4567