GM Ignition Switch Claims Resurrected By 2nd Circ.

Law360, New York (July 13, 2016, 12:55 PM EDT) -- The Second Circuit on Wednesday struck down bankruptcy decisions that shielded General Motors from liability related to ignition switch defects, saying a 2009 sale of the automakers’ assets that provided the company with legal cover violated potential victims’ rights to due process.

The federal appeals court reversed parts of a 2015 ruling by U.S. Bankruptcy Judge Robert Gerber in finding that the sale order could be used to enjoin claims related to the ignition switch defect. The decision examines the limits to which the new GM entity that was formed upon the completion of the bankruptcy sale is shielded by “free...

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