In the continuing story on the General Motors ignition switch recall, the judge who presided over the 2009 reorganization and government bailout wants to learn whether GM committed fraud before he allows claimants to continue with their cases against GM.
U.S. Bankruptcy Judge Robert Gerber said today wants to review bankruptcy law and consider whether claimants for economic damages “were discriminated against at the time of the bankruptcy compared with accident victims, in line with car owners’ assertions that under bankruptcy law, they are the same type of creditor,” according to Bloomberg.com.
After this is achieved, Gerber will decide whether claimants can begin the process of “discovery” and examine company records. “We’ll get as far as we can without discovery. There will be no discovery until I order otherwise,” he told the courtroom. “It would be great if whatever money is available for injured people could go to them and not attorneys’ costs.”
The following weeks are important to claimants because it will determine how General Motors approaches the 59 lawsuits brought by owners of affected cars. They want to be compensated for loss of their vehicles’ value, loss of use, or other inconvenient costs incurred for time spent dealing with the recall.