Effort by Plaintiffs in Two GM Cases To Appeal Bankruptcy Stay Is Denied

Two sets of economic-loss plaintiffs who sought to forge ahead with their cases against General Motors LLC while a bankruptcy court was still considering GM’s potential liability may not do so, a federal district court in New York has ruled (In re Motors Liquidation Co., S.D.N.Y., 1:15-cv-00772-JMF, 5/18/15).

The plaintiffs here, along with many others, alleged their vehicles lost value due to ignition-switch defects.

“The bottom line is that Plaintiffs will have ample opportunity to argue … that their claims are not subject to New GM’s motion to enforce” the bankruptcy sale agreement that protects the company ...