GM sued in California over ignition switch

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General Motors was hit with a lawsuit on Wednesday demanding that the company be held liable for allegedly concealing ignition problems before its 2009 bankruptcy.

The ignition switch problems led to the recall of 1.6 million vehicles last month.

GM is a different legal entity than the one that filed for bankruptcy protection and reorganized in 2009. The so-called new GM is not responsible under the terms of its bankruptcy for legal claims relating to incidents that took place before July 2009. Those claims must be brought against what remains of the “old” or pre-bankruptcy GM.

GM announced the recall in February, despite learning of problems with the ignition switch in 2001. GM has said that when the ignition switch was jostled, a key could turn off the car’s engine and disable airbags, sometimes while traveling at high speed.

Reuters and Bloomberg contributed to this report.
http://www.autonews.com/article/20140319/OEM11/140319798/gm-sued-in-california-over-ignition-switch

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