Boston, MA 04/22/2014 (wallstreetpr) – General Motors Company (NYSE:GM) filed a petition in a U.S. court to impose a restriction comprising its sale order.
GM seeks to proscribe plaintiffs from taking any legal action against the new and restructured company for matters which concern the old GM. Here, the company refers to the move it had taken in 2009 while emerging from bankruptcy. The company had adopted a new legal entity altogether which separates it from the GM that existed prior to 2009.
Pre-Bankruptcy
The new entity raised objection in a motion it filed in a U.S. Bankruptcy Court on Monday. The motion asked the Court for the Southern New York Districts whether the new GM should be sued by claims that it is violating the Court’s Sale Order and Restrictions for financial damages that relate to vehicles and parts that were sold by the previous GM. In accordance with the new terms, General Motors Company (NYSE:GM) says, that the company’s new entity does not hold itself liable to incidents that occurred prior to the emergence of the company from the state of bankruptcy. It said that any claims concerning pre- bankruptcy matters should be dealt with and filed against the remnants of the old GM.
Lawsuits & Claims
Since February, when GM announced the recalling of as any as 2.6 million vehicles, several lawsuits have been filed against it. Many of these are filed on behalf of those who were either killed or faced injuries in accidents that occurred due to the faulty cars. Some lawsuits also claim that the due to company’s actions, the vehicles’ market value has suffered tremendously. Plaintiffs have accused the company of unlawfully concealing prior knowledge of the defects in its vehicles, and later claiming on this basis that it was not responsible for any responsibility occurring from liability.
General Motors Company (NYSE:GM) has urged the court to direct all plaintiffs to stop further prosecution against the new entity.
