Hagens Berman Files First Objection to General Motors’ Bankruptcy Filing

Hagens Berman has filed the first objection to General Motors’ bankruptcy filing in the class-action case against the automaker regarding the safety recall of 2.6 million vehicles with ignition switch defects that have been linked to 12 fatalities and more than 300 crashes.

“GM’s motion is a calculated response in their massive cover-up to keep consumers from receiving the remedy they deserve,” said Steve Berman, managing partner of Hagens Berman and lead attorney representing plaintiffs in a case against GM. “When standing before the American people, GM claims to take responsibility, but in the courtrooms of America, it seeks the opposite and fights to avoid responsibility for its illegal acts.”

The objection is in response to a motion from GM to permanently enjoin plaintiffs from asserting claims against New GM, based on the court-approved bankruptcy sale of assets from Old GM to New GM. GM claims that the bankruptcy filing completely separates the company into two separate entities from that point in time.

According to court documents, the objection states that during this bankruptcy filing, the entities of Old GM and New GM, “actively expanded their long-running cover-up of the ignition switch defect to commit fraud on the Bankruptcy Court by failing to disclose these matters.”  Berman also noted that, “We expected GM to try to wiggle out of its moral obligation, so many of our claims are not subject to bankruptcy protection, and we expect the court to recognize this and release the stay and allow us to move forward with those claims.”

The safety defect involves the car’s ignition, which according to consumers, can switch off while in operation, disabling airbags and other electrical features integral to safety such as power steering and power brakes.

The firm seeks to represent all individuals who owned or leased a GM vehicle affected by the recall including: 2005-7 Chevrolet Cobalts and 2007 Pontiac G5 models, and last month extended the recall to include 2003-7 Saturn Ions, 2006-7 Chevrolet HHRs, 2006-7 Pontiac Solstice and 2007 Saturn Sky models. On March 28, 2014, the recall was expanded to include later models, including: 2008-10 Pontiac Solstice and G5 models, 2008-10 Saturn Sky models, 2008-10 Chevrolet Cobalts and 2008-11 Chevrolet HHRs.

Concerned consumers who have owned or leased any of the affected GM models during the affected period are encouraged to contact a Hagens Berman attorney by emailing [email protected] or calling 206-623-7292. Additional information about the investigation is available at www.hbsslaw.com/GM.


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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in 10 cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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