General Motors posted a court filling this week in which the company claims it shouldn’t be held accountable for safety issues that arose before it exited bankruptcy back in 2009.
The No. 1 US automaker is simply aiming to cut down losses, as it faces numerous lawsuits from disgruntled owners that claim billions of dollars in losses. The carmaker says the court should shield the automaker from lawsuits linked to the pre-2009 period, including the ones stemming from the recall of 2.6 million cars with defective ignition switches.
The brief was filed in a Manhattan bankruptcy court, the same one that presided over the company’s government backed exit out of bankruptcy. It’s the opening act of GM’s legal arguments as the company has been taken to court by the drivers that seek compensation over losses caused by the massive string of recalls of 2014. The ignition switch recalls alone (and there are numerous other campaigns for other defects) have grown to encompass numerous other models and have affected millions of vehicles.
Back in April, GM asked Judge Robert Gerber of the US Bankruptcy Court in Manhattan – the same one who guided its bankruptcy process – to enforce the legal shield that was created back in 2009 when the company was sold to form the so-called “New GM.” They said that liabilities for any issues with older vehicles should be deferred to the company that is now known as “Old GM.”