US Bankruptcy Judge Robert Gerber was previously asked to make a narrower ruling regarding claims over fallen vehicle values, however GM now wants a single decision that could be applied to accident and economic-loss claims.
Despite the promise of a victims fund to provide compensation for injuries and deaths that occurred before the company’s bankruptcy restructuring, attorneys have continued to fight a long list of lawsuits that have been filed throughout the US.
“Defendants do not believe that any potential settlement negotiations would be meaningful or productive until the parties and this court know what claims, if any, remain to be litigated after the bankruptcy court decides the matters before it,” GM attorneys wrote in a letter, as quoted by Bloomberg.
The company appears to expect a significant number of claims to be submitted through the voluntary program. Recent financial disclosures point to $400 million as the internal estimate for settlement costs, with the possibility of another $200 million if needed.
Although the bankruptcy court proceedings are moving forward separately, a broad rejection of pre-bankruptcy claims could have a significant impact on the settlement program. Claimants will have a choice between accepting GM’s offer or pursuing a higher amount in court, however a dismissal of court claims would discourage victims from rejecting GM’s proposals.
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