The U.S. Supreme Court has told GM that it will have to face the potentially billions of dollars in multiple legal claims after installing a deadly ignition switch in their cars. GM argues they were ‘free and clear’ of liability and use their 2009 bankruptcy sale as an appeal.
The justices overseeing the issue left no comment in the federal court appeals ruling which stated any accord of bankruptcy would not protect GM from accidents, and any following claims, that happened before the sale. Lawyers of plaintiffs estimate current claims total for nearly $10 billion dollars. This number could increase should there be more lawsuits to follow.
This ruling is another setback for Mary Barra, the GM Chief Executive Officer. She has already experienced woes within the company. In her first year, her role as CEO was heavily occupied by the ignition defect which is directly associated with at least 124 deaths and recalls of 2.59 million cars. One financial analyst says there is a finite risk which will require GM to reconsider buying back stock or paying out its