General Motors Company (GM) files a motion in bankruptcy court for protection
General Motors Company (NYSE:GM) has filed a motion in the U.S. bankruptcy court asking for a judge to protect the auto giant from legal claims for actions that took place before it stepped out of bankruptcy in 2009. The motion was filed late on Monday in the Bankruptcy Court for the Southern District of New York.
A hearing for the motion has not been set as of yet. GM’s filing asserts that “numerous lawsuits” recently filed in the United States deals with the company’s recall of cars with possible ignition switch problems are “retained liabilities” of the old General Motors and not the new company. GM said that the recall involves vehicles “manufactured and sold by Old GM” and asks Judge Robert Gerber to protect the “new GM.”
“This motion to enforce involves only litigation in which the plaintiffs seek economic losses against New GM relating to an Old GM vehicle or part, including, for example, for the claimed diminution in the vehicle’s value, and for loss of use, alternative transportation, child care or lost wages for time spent in seeking prior repairs,” states the filing. “Those types of claims were never assumed by New GM.”
GM is currently facing over 50 class actions and 2 individual action lawsuits from across the country that is tied to its recall of 2.59 million older vehicles with faulty ignition switches. General Motors said that the lawsuits have been filed in over 20 federal courts and 2 state courts. GM said that the “New GM” acquired “Old GM” assets “free and clear of all liens, claims, liabilities.”
“General Motors has taken responsibility for its actions and will keep doing so,” said General Motors in a statement today. “GM has also acknowledged that it has civic and legal obligations relating to injuries that may relate to recalled vehicles, and it has retained Kenneth Feinberg to advise the company what options may be available to deal with those obligations.”