GM Bankruptcy Judge Grants Stay Of Ignition Switch Suits

By Y. Peter Kang (May 27, 2015, 8:23 PM EDT) -- A New York bankruptcy judge on Wednesday agreed to stay dozens of suits filed against General Motors Co. in connection with ignition switch defects for certain cars, saying that dismissing the cases at this juncture could prove "cumbersome" if plaintiffs' appeal of his order barring the suits is successful.

U.S. Bankruptcy Judge Robert Gerber had allowed General Motors Co. to emerge from bankruptcy in 2009 and leave behind liabilities from "Old GM," and ruled in mid-April that those protections blocked most car owners seeking to sue the new company for billions of dollars over its fatal ignition switch defect.

On Wednesday,...

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