GM Board Directors Don’t Have To Submit To Claims Over Faulty Ignition Switches
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It seems there is a line drawn in the proverbial sand as to who is at fault in the GM switch recall debacle, as General Motors board directors won’t have to submit to investors allegations that careless over sight was to blame for faulty vehicles now linked to nearly 120 deaths and many more injuries, according to a Bloomberg report.
Delaware Chancery Court Judge Sam Glasscock said the company’s board had acceptable oversight systems in place, even though GM produced millions of vehicles with faulty ignition switches in place. Consequently, Glasscock threw out the lawsuit, which was filed by pension funds.
According to Glasscock, the funds couldn’t show the “existence of red flags the board consciously ignored.” Shareholders also failed to provide the damning evidence needed to lay blame on the board.
“The court made the right decision and we’re hopeful all similar suits against directors that focused on the same allegations will eventually be dismissed,” Jim Cain, a GM spokesperson, told the news outlet in a phone interview.
GM is still looking down the barrel of more than 100 consumer lawsuits filed in regards to the 2.5-million faulty vehicles it produced.
Plus, one of the central lawsuits, a packaged case that includes many of those who decided to opt out of the Kenneth Feinberg compensation fund and will see 35 GM execs deposed including CEO Mary Barra, is yet to fully play out in court.
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