Bloomberg Law
July 13, 2016, 8:42 PM UTC

GM’s Plan to Avoid Ignition Switch Suits Dashed on Appeal

Bloomberg Media

By Erik Larson, Bloomberg News

A federal appeals court upended General Motors Co.’s plan to shed hundreds of lawsuits over a deadly ignition switch defect found in millions of cars, ruling that such cases aren’t automatically barred by the company’s 2009 bankruptcy sale to a new corporate entity.

The decision Wednesday by the U.S. Court of Appeals in Manhattan is a major setback for GM after the biggest U.S. automaker won two straight victories in test trials over the switch defect, which has caused at least 124 deaths and led to 2.59 million vehicle recalls. The court said the economic losses alone were ...

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