GM Aims to Shirk Responsibility with Current or Pending Lawsuits
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General Motors Corp. is currently re-organizing itself and plans to emerge as a new company post-Chapter 11 bankruptcy. The company will be aptly named “New GM.” Unfortunately, this “new” company is still utilizing old tactics to free itself from legal liability.
Any lawsuit currently filed against GM will only be able to seek retribution via “Old GM,” which will essentially be a collection of bad assets and debt with little-to-no chance of a plaintiff securing any financial compensation for personal injury, according to the Associated Press.
However, the new GM will assume any future product liability claims. This means if the seatbelt in your GM vehicle fails to work after the new company emerges from bankruptcy, you can file a claim. But if your seatbelt failed to work and you filed a claim two months ago, you’re basically left in the lurch dealing with the ram shackled, destitute GM of yesteryear.
If this bankruptcy plan is executed, it will set a terrible precedent. Companies could use Chapter 11 as a means to avoid legal liability with pending, or active lawsuits.
In GM’s original bankruptcy plan, they had the audacity to propose leaving all legal liabilities behind after selling its "good" assets to the new, government-owned company. If GM had their way, future car-accident victims would have been unable to sue and be categorized as “unsecured creditors,” according to the Wall Street Journal.
As an injury lawyer with 20 years of experience representing clients who’ve been injured in car accidents, I’m glad GM will be obligated to take on future product liability claims but it’s outrageous that current, or pending, lawsuits with victims dealing with severe injuries will be left with little recourse for proper compensation.
About the Editors: Shapiro, Cooper Lewis & Appleton personal injury law firm is based in Virginia (VA), near the NE North Carolina (NC) border and handles car,truck,railroad, and medical negligence cases and more. Our lawyers proudly edit the Virginia Beach Injuryboard, Norfolk Injuryboard, and Northeast North Carolina Injuryboard as a pro bono public information service. Lawyers licensed in: VA, NC, SC, WV, DC, KY.
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