GM Requests Bankruptcy Court for Hold on Ignition Switch Vehicle Recall Lawsuits

General Motors, which is in the process of a vehicle recall involving 2.6 million older model cars worldwide, has requested that a federal bankruptcy court car plaintiffs from proceeding with personal injury lawsuits related to the ignition switch recall.

The company faces numerous lawsuits and investigations regarding delays in the vehicle recall which led to at least 31 injuries and 13 deaths. However, GM filed a request in the US District Court for the Southern District of Texas on Tuesday, April 15th, asking for a stay in litigation while a judicial panel on multidistrict litigations decides whether or not to consolidate the personal injury and wrongful death claims related to the vehicle recall, as well as whether or not the claims violate GM’s 2009 bankruptcy filing.

The automotive manufacturer also filed in the US District Court for the Northern District of California seeking a stay on pending litigation related to the vehicle recall. GM also said that it plans to file a motion in the Bankruptcy Court for the Southern District of New York to enforce an injunction in its sale order, which the company claims will bar any personal injury plaintiffs from filing lawsuits against the reorganized company for damages related to the previous company.

The cars under vehicle recall are mostly 2004 and 2005 models, and allegedly, when GM filed for bankruptcy in 2009, the manufacturer became a “new company.”

The proposed personal injury class action was filed in a federal court in Texas, and claims that GM knew about the problem since 2004. This created “unreasonably dangerous” conditions for drivers. The proposed class action seeks as much as $10 billion for the lost value of the small cars GM has recalled.

GM has also issued two other large vehicle recalls: one, due to airbag deployment problems, covers 1.2 million 2008-2013 model Buick Enclaves and GMC Acadia SUVs, as well as 2009-2013 Chevrolet Traverse and the 2008-2010 Saturn Outlook; the other covers 1.5 million Chevy Malibus and Malibu Maxx’s from the 2004-2005 model years, plus some 2006, 2008 and 2009 model-year cars, Chevrolet HHR from the 2009-2010 model years (non-turbocharged only), some Cobalts from 2010, some Saturn Auras from 2008-2009, Saturn Ion from the 2004-2007 model years, Pontiac G6 from the 2005 model year, plus some cars from the 2006, 2008 and 2009 model years, and service parts installed into certain vehicles before May 31, 2010, under a previous recall, all due to power steering problems.

The Strom Law Firm Can Help with Defective Products and Vehicle Recall Cases

If you have experienced a problem with a defective product in your automobile, especially if a defective part has led to an auto accident or personal injury, and a proper vehicle recall notice has not been issued, you may be entitled to compensation. The attorneys at the Strom Law Firm can help. We can help you with complicated auto insurance claims, and make sure you receive the compensation you deserve to help you with lost income and medical bills. Our attorneys are licensed to practice in South Carolina, Georgia, and New York. We offer free, confidential consultations to discuss the facts of your case, so contact us today at (803) 252-4800.