GM lost-value lawsuits head to New York court

A panel of judges has ruled that lost-value lawsuits against General Motors will be heard in a New York court overseen by Judge Jesse Furman.

The decision affects lost-value complaints, outlined in dozens of separate lawsuits, that have been filed by owners who claim to have suffered economic damages due to the ignition-switch recall.

The court will be tasked with determining if GM’s bankruptcy proceedings will legally shield the “new GM” from claims regarding actions that were taken by the “old GM.”

Attorneys representing the plaintiffs argue that the current entity is liable for pre-bankruptcy claims involving the ignition-switch recall. The company is accused of omitting the known defect from the bankruptcy proceedings, effectively defrauding the court.

GM and supplier Delphi — also named as a defendant — both pursued bankruptcy in New York courts. Several judges, including Furman, “have some familiarity with the common defendant and its prior bankruptcy proceedings,” the panel concluded, as quoted by Reuters.

The company still faces numerous other lawsuits, including wrongful-death claims and shareholder filings.