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  • GM not protected from ignition switch claims: U.S. appeals court

    07/13/2016 12:09:53 PM PDT · by jazusamo · 20 replies
    Reuters ^ | July 13, 2016 | Jessica Dye
    In a blow to General Motors Co (GM.N), a federal appeals court on Wednesday reversed part of a bankruptcy court ruling that protected the automaker from some lawsuits over an ignition switch defect that prompted the recall of 2.6 million vehicles in 2014. The 2nd U.S. Circuit Court of Appeals in Manhattan said barring plaintiffs from suing the automaker over crashes and lost vehicle value stemming from the faulty switch would violate their constitutional rights to due process, since they had not been notified of the defect prior to GM's 2009 bankruptcy. The ruling effectively rebuffs GM's attempts to shield...