General Motors Seeks New York Court for Recall Lawsuits

General Motors Co is seeking to have a New York Court handle the lawsuits that were filed by customers affected in its ignition-switch defect recall, as lawyers for car owners insisted saying that the deaths caused by the defect actually exceeded the count of 13, as initially declared by the automaker, making matters worse. Several car owners want the case to be handled by the judge in California.

General Motors Seeks New York Court for Recall Lawsuits

General Motors Seeks New York Court for Recall Lawsuits

General Motors paid a fine of $35m to the National Highway Traffic Safety Administration over poor conduct of the whole matter, and it consented to additional oversight by regulators. However, the company has still civil cases to deal with.

On Thursday, attorneys representing car owners of over 2.50m recall, made further assertions of additional deaths. A majority of car owners demanded to have their case handled by the California judge or any other location rather than New York. One lawyer claimed that, there were more than 60 deaths linked to the ignition defect that his firm knew of – without offering supporting evidence.

Andrew Bloomer, a lawyer representing General Motor, asked the seven-member US Judicial Panel on Multidistrict litigation to send cases which were filed in Detroit, Miami, and someplace else to Manhattan Court, which is the best place in light of the fact that it’s close to the bankruptcy court for Old GM. Attorneys for the affected parties, don’t think this would matter, and instead want California Court, where the unintended acceleration cases from Toyota are being heard.

The Judicial Panels decision is to come within a week, and will be the first major step towards resolving whether GM is liable for the ignition switch defect and owes billions in the damages that were involved. The judgment will affect the economic claims against the company. GM is reportedly facing $10bn in lawsuits, and it is the judge could choose it’s a matter for the bankrupt GM and save its current business from paying the offended parties.

Acting NHTSA Executive David Friedman believes there could be more deaths than 13, as claimed by GM. The death and bodily injuries claim against GM are currently being negotiated separately.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Supply chain crisis bad news for automotive industry leaders

Supply chain crisis bad news for automotive industry leaders

The world’s biggest car companies are on track to lose production of 7.7 million vehicles in 2021. The forecast advices automakers on supply chain and other issues.
2 days ago
Scammers dupe Apple fans with free bitcoin lure

Scammers dupe Apple fans with free bitcoin lure

Savvy scammers used a fake event stream, a fake Apple website, and the promise of free bitcoin to lure fans into opening up their wallets.
3 days ago
Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

The total amount of cash to be received as part of MUFG Union Bank’s sale to Bancorp is $7.3 billion (800 billion yen).
4 days ago
Evergrande: A black swan event that could spook markets

Evergrande: A black swan event that could spook markets

EverGrande is now known as the “world’s most indebted property developer” and serves as a symbol of corporate excess.
5 days ago
Moderna vaccine more effective than Pfizer, study says

Moderna vaccine more effective than Pfizer, study says

Moderna’s Covid-19 vaccine does a slightly better job of preventing coronavirus-related hospitalizations and emergency department visits.
7 days ago
iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

Apple iPhone 13 Pro and iPhone 13 Pro Max can be a hit with its ever new technology A15 Bionic chip and other cool profound features.
1 week ago