Litigation » SCOTUS Hangs GM Out To Dry In Ignition-Switch Case

SCOTUS Hangs GM Out To Dry In Ignition-Switch Case

Car driving through the city at night.

April 25, 2017

The Supreme Court rejected a request from General Motors Co. to review a lower-court ruling that will allow some victims’ families to sue over defective ignition switches. That will expose the company to up to $10 billion in new claims, the Wall Street Journal reports. In July, the Second U.S. Circuit Court of Appeals said that the auto maker should have disclosed the defect during its 2009 bankruptcy. Since it failed to do so, GM may face hundreds of wrongful death and personal injury cases, as well as cases from customers alleging that the scandal led to devaluation of their cars. GM has already spent $2 billion in settlements with consumers, shareholders, and federal prosecutors over the ignition-switch debacle. The company had to recall 2.6 million older cars with the defective switches in 2014. They were linked to more than 124 deaths.

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