GM's Bankruptcy Shield Too Flimsy To Block Defect Suits

Law360, New York (March 14, 2014, 9:54 PM EDT) -- A 2009 bankruptcy deal brokered by Uncle Sam was supposed to protect the reincarnated General Motors Co. from legacy liabilities, but attorneys say that an impending wave of suits over a long-festering vehicle defect could nonetheless advance if it turns out the automaker hid the danger from the public.

As federal prosecutors and safety officials begin probing whether GM sat on evidence of the defect — an ignition switch problem that can prevent airbags from deploying — the iconic company is also girding for a deluge of product liability suits from accident victims alleging personal injuries.

GM’s exposure will hinge on...

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