GM Hopes To Use Its Bankruptcy To Avoid Liability For Its Product Defect Claims

Brooks Schuelke

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At a critical hearing tomorrow, GM's bankruptcy judge will be asked to approve the current plan for the transfer of assets from GM to the "new" GM. As part of that plan, all existing personal injury claims arising from defects in GM vehicles will be classified as unsecured creditors, and the claims will be discharged.

What does that mean? Injuryboard writer Jane Akre had a wonderful story earlier today about Lexi James. Lexi was a precious young girl who was killed after the 15 passenger van she was traveling on rolled over after experiencing a blow-out. Lexi was ejected from the van during the roll-over despite wearing her seat belt. Lexi's family had filed suit against GM to seek some accountability, but that accountability will be unavailable if the bankruptcy goes through.

If you're opposed to these losses of claims, you can still act by calling the White House (202-456-1414) or sending a fax (202-456-2461) and asking them to intervene on behalf of Lexi and all those others injured by GM's defective products.