Consumers have filed 79 lawsuits for a total of $10 billion for the lost value of their old GM cars due to the ignition switch recalls. According to a report from The Detroit News, in a U.S. Bankruptcy Court filing, GM has said it has been sued in an additional 20 ignition switch class-action lawsuits since April 30. Many of the lawsuits claim GM failed to properly warn owners that their cars were unsafe.
Some of the lawsuits suggest the "old GM" knowingly withheld that information, and that the "new GM," which bought and operated the old GM, should be liable as it is a post-bankruptcy successor.
The GM ignition recalls involve Chevrolet Cobalts, Saturn Ions, and other models produced before the automaker's 2009 bankruptcy. GM has asked a judge to rule that it isn't liable for claims prior to its 2009 bankruptcy filing. Meanwhile, a panel of judges is likely to decide next week which courts should handle the lawsuits, and if they should be combined into one.
This week U.S. Senators Richard Blumenthal, D-Conn., and Lindsey Graham, R-S.C., introduced a bipartisan bill requiring federal judges to consider public health and safety before allowing court records to be sealed per a party's request. GM had previously sealed cases tied to the ignition switches which prevented the public from knowing the dangers tied to the faulty vehicles.
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