General Motors (GM) Issues Statement on Bankruptcy Filing in NY Court

April 22, 2014 9:57 AM EDT Send to a Friend

GM (NYSE: GM) statement on filing in the bankruptcy court for the southern district of New York:

“General Motors has taken responsibility for its actions and will keep doing so. GM has also acknowledged that it has civic and legal obligations relating to injuries that may relate to recalled vehicles, and it has retained Kenneth Feinberg to advise the company what options may be available to deal with those obligations.”

Background:

GM has asked the Bankruptcy Court for the Southern District of New York to rule on whether the growing number of lawsuits alleging purely economic damages resulting from the ignition switch recall may proceed.

The motion does not concern accidents or injuries. As the motion states clearly, it “does not address any litigation involving an accident or incident causing personal injury, loss of life or property damage.” Further, the motion “does not involve whether New GM should repair the ignition switch defect. New GM has committed to replacing the defective ignition switch as a result of the recall. The lawsuits that are the subject of this motion, most of which purport to be class actions, are brought by or on behalf of individuals who were not injured as the result of any failure of the ignition switch.



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