DETROIT (AP) – A federal appeals court has decided that people injured in crashes caused by faulty General Motors Co. ignition switches can sue the company even if they were hurt before GM’s 2009 bankruptcy filing.
The ruling Wednesday by the 2nd U.S. Circuit Court of Appeals in Manhattan means that hundreds of pre-bankruptcy claims can proceed, including some lawsuits alleging that GM’s actions caused the value of its cars to drop.
The ruling at least in part overturns retired U.S. Bankruptcy Judge Robert Gerber’s April 2015 decision that General Motors LLC, the company that emerged from bankruptcy protection, was shielded from claims stemming from pre-bankruptcy crashes. Gerber ruled that all pre-bankruptcy claims had to be filed against Old GM, the remnants of the company with few assets that were left behind in bankruptcy.
Robert Hilliard, a lead attorney in the death and injury cases, says GM is now exposed to billions more in liabilities.
“This takes GM from the bottom of the ninth back to the first inning in regards to financial liability for the ignition switch defect,” he said.