Justices turn away GM appeal over ignition switches
WASHINGTON (AP) — The Supreme Court on Monday turned away an appeal from General Motors Co. seeking to block dozens of lawsuits over faulty ignition switches that one plaintiffs' attorney said could expose the company to billions of dollars in additional claims.
A federal appeals court ruled last year that GM remains responsible for ignition-switch injuries and deaths that occurred pre-bankruptcy because the company knew about the problem for more than a decade but kept it secret from the bankruptcy court and owners of cars with the faulty switches.
The decision also opens GM to claims that any of those cars sold by the company prior to bankruptcy lost value because of the ignition-switch scandal.
The company had argued that well-established bankruptcy law allowed the newly reorganized GM to obtain the old company's assets "free and clear" of liabilities.
GM recalled 2.6 million small cars worldwide in 2014 to replace defective switches that played a role in at least 124 deaths and 275 injuries, according to a victims' fund set up by GM and administered by attorney Kenneth Feinberg.
