GM ignition switch related cases go to New York image

According to a federal judicial panel ruling, from now on all cases against General Motors from users who suffered economic losses would be consolidated and sent to a New York court.

After the February recall over cars equipped with defective ignition switches, which has come to encompass 2.6 million cars, General Motors has been piling up litigations from owners discontent on the way the automaker handled the recall – first off it withheld it for at least 11 years and then, as the months have passed, very few cars have been actually serviced for the faulty part replacement.

So far, at least 80 cases were filed in various courts across the US by owners of the affected cars, seeking compensation over the alleged value loss because of the recall. GM asked that all cases were transferred to a New York court, making it easier for the federal judges to refer – as the city is the same where GM filed and emerged out of bankruptcy back in 2009. That would make it easier for the judge to consult with the bankruptcy judge that was asked by GM to stop the economic lawsuits – because of the so-called bankruptcy shield, where the litigations should be taken to the “old” GM entity.

The US Judicial Panel on Multidistrict Litigation, the authority that rules on consolidation requests, seems to have been convinced by the automaker, as the lawsuits would be taken by US District Judge Jesse Furman in the Southern District of New York.

Via Reuters