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GM Ignition Switch Lawsuits Consolidated in Manhattan

Consolidation was recently ordered for lawsuits related to economic losses from General Motors’ ignition switch recall scandal. Most of the lawsuits are brought by plaintiffs who allege that the resale value of their vehicles has declined significantly due to ignition switch problems that the automaker hid from the public for more than a decade.

These so-called “depreciation claims” could run from $500 to $1,000 per vehicle, making this possibly one of the most expensive consumer civil action lawsuits in history, the WSJ reports.

A Manhattan bankruptcy judge will determine whether the plaintiffs’ claims are barred by GM’s 2009 bankruptcy. Attorneys will likely argue that the bankruptcy protection would violate the due process rights of their clients because the automaker knew of the ignition switch issues at the time of the bankruptcy.

General Motors will reportedly launch a compensation program for customers injured or killed due to the company’s ignition switch issues.

This week, GM recalled 89,000 more vehicles, including Buick, Chevy, and GMC models.

Greene Broillet & Wheeler, LLP handles product liability cases across Southern California. If you or a loved one has been injured due to a defective product, call us at (866) 634-4525 or contact us online.