GM Faces Potential Mountain Of New Claims In Ignition MDL

Law360, New York (July 14, 2016, 11:31 PM EDT) -- The Second Circuit’s Wednesday decision that partially undid a bankruptcy ruling protecting New GM from certain ignition-switch defect claims has significantly raised the company’s liability exposure in multidistrict litigation and creates the possibility that new bellwether cases will be added, attorneys say.

With the panel’s ruling, the post-Chapter 11 entity's potential liability increased by billions of dollars as the pool of cases grew to include cars made before GM’s 2009 bankruptcy, according to attorneys familiar with the case. GM’s timing in revealing the ignition-switch defect until after its bankruptcy effectively violated potential victims’ rights to due process, the court found....

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