General Motors Company (GM) faulty ignition switch case gets sent to New York

Posted Jun 9, 2014

The General Motors Company (NYSE:GM) faulty ignition switch case is getting sent to U.S. District Judge Jesse Furman in the Southern District of New York. The case was sent from a ruling by the U.S. Judicial Panel on Multidistrict Litigation, the organization that considers requests for consolidating related lawsuits in U.S. federal courts.


Over 80 lawsuits have been filed by GM customers that allege their cars lost value because of the recall in February. General Motors asked the cases be consolidated and transferred to New York, which is the same district where GM filed for bankruptcy and emerged from in 2009. GM asked the federal bankruptcy court in Manhattan to determine whether claims brought by plaintiffs over the recall are blocked by the bankruptcy sale order terms that created the “new GM.”

The order does not affect lawsuits related to personal injuries or deaths alleged to have been caused by the vehicle defects. The plaintiffs’ lawyers suing the company had asked the cases to be consolidated but disagreed on where. The forums they suggested were Los Angeles, Miami, New Orleans, San Francisco and Texas.

The panel said that the Manhattan district was the best choice since it handled the bankruptcy of GM along with the bankruptcy of Delphi Automotive, which is the supplier that made the defective switch. Delphi is a defendant in some of the cases.

[Source: Reuters]