Class Action Lawsuit Against GM For Vehicle Recall Consolidated in Federal Court

A panel of federal judges consolidated a class action lawsuit against General Motors for personal injury and wrongful death related to the company’s ignition switch vehicle recall in the Southern District of New York.

The Judicial Panel of Multidistrict Litigation (JPML) consolidated the cases under US District Court Judge Jesse Furman. Furman was appointed to the vehicle recall lawsuit by President Barack Obama.

Although GM’s strategy was to have the vehicle recall personal injury lawsuits dismissed, having the lawsuits consolidated in New York is also good for the automotive manufacturer. The Southern District Court is where GM filed its 2009 bankruptcy lawsuit.

“This order affirms what we’ve maintained all along,” the company said. “All cases should be transferred to the Southern District of New York, which is in the best position to coordinate with the Bankruptcy Court’s proceedings, has previously heard appeals from the Sale Order and Injunction, decided several contested matters relating to the asset sale and where several of the ignition switch actions filed to date are pending.”

Several of the personal injury lawsuits allege that the “Old GM” – the company declared a separation between “old” and “new” after it successfully filed for bankruptcy in 2009 – promoted the 2004 and 2005 model Cobalts and other vehicles under the current vehicle recall as safe and reliable, despite possessing knowledge of the dangerous key ignition problem. Many of these injury and wrongful death lawsuits allege that “New GM” has successor liability, and one lawsuit even claims “deceptive and unfair acts and omissions of old GM.”

Some of the vehicle recall lawsuits also name Delphi Corp, which manufactured the defective ignition switches, as a co-defendant in the lawsuit.

The GM ignition recall covers 2.6 million older-model cars from years 2004 and 2005. There have been over 50 personal injuries due to crashes related to the ignition switch problem, and at least 13 deaths on record. While being questioned at a Congressional hearing, CEO Mary Barra said that the pretrial proceedings could uncover more injuries and deaths.

Barra said that GM has set aside $1.7 billion to settle the vehicle recall lawsuits, but that the company has not put an official financial limit on the damages.

The Department of Transportation also levied the highest possible fine against the automobile manufacturer – $35 million – and now seeks a motion from Congress to raise that $35 million cap to $300 million.

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.