GM Ignition Switch Settlement Derails, Plaintiffs Vow Lengthy Legal Battle6
General Motors and those who have sued the automaker over its ignition switch scandal are likely in for series of long legal battles. The trust that holds GM liabilities prior to its 2009 bankruptcy has canceled a pre-determined settlement that would have cost “New GM” $1 billion in stock.
The settlement, in total, called for the trust to accept $10 billion in claims and would have triggered a provision in GM’s bankruptcy that would force the automaker to hand over the $1 billion worth of shares to help pay for the settlement. GM was not pleased and the automaker’s lawyer claimed the entire settlement was worked out between plaintiffs and “Old GM’s” creditors.
Now, the plaintiffs’ lawyer, Steve Berman, plans for even greater legal action that could go as far as seeking the trust’s assets entirely, according to Reuters.
“Game isn’t over,” Berman said. “We had a deal, GM has knowingly interfered with our deal and we intend to take action against GM on various fronts.”
GM, naturally, praised the settlement’s cancellation, which would have resolved 11.9 million economic loss claims and 400 and 500 personal injury and wrongful death claims
“We are pleased with today’s developments,” GM said in a statement. “Now the focus can return to where it belongs, which is the merits of the plaintiffs’ remaining claims. We will demonstrate that those claims lack merit.”
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.
GM “We are pleased with today’s developments”, “Now the focus can return to where it belongs, which is the merits of the plaintiffs’ remaining claims. We will demonstrate that those claims lack merit.”
GM should be able to defend themselves in any case that is not legit.
Some of these cases that were being settled were legit and GM fought the ones where people were committing fraud.
GM has already had many of these claims tossed out due to people lying.
There was one recently the guy claimed his ignition failed. But it was shown he had the recall done before the accident and witnesses said he just lost control.
A welfare queen by a new name is still a welfare queen.
There is an old saying “the truth eventually comes out”. Maybe some people should be in jail. GM has had a very specific process for production parts going through the system. An engineer cannot make changes unless it goes through an approval system. The vendor cannot make changes without a GM change approval. Payment for changes need an GM approval. Production parts have to go to through an approval process which will allow payment for parts. Approvals are made by upper management. Now we have the lawyers are in a drag it mode where the plaintiffs will die off. Think about it. I agree there are false claims which need to be addressed but there are legit claims.
Well that is how the system was supposed to work but as we have seen in the auto industry it does not alway work that way.
People in many large businesses will fudge numbers or take short cuts to make their numbers.
This is the major flaw if running a buisness purely on numbers.
Then you have on the other side where customers and lawyers are also not honest and try to take advantage of the system.
There is enough dishonesty to go around on both sides here and only honest can put it all right,
Unfortunately honest in the busisness world, media, politics and the consumer tends to be a very rare commodity today.