Jason L. Weiner
April, 2015

UPDATE: General Motors Can Retain its “Bankruptcy Shield”

In February 2015, Judge Gerber heard arguments regarding whether the “bankruptcy shield” – protecting GM from claims that arose prior to the 2009 Chapter 11 case – should continue to protect GM (see S&W Blog: General Motors Fights to Retain its “Bankruptcy Shield.”  On April 15, 2015, Judge Gerber ruled, finding no support for claims that GM committed a “fraud upon the court” by failing to disclose ignition switch defects in 2009. Judge Gerber’s ruling bars claims based on Old GM’s conduct, and allows GM to focus its efforts on the now-pending class action lawsuits for post-bankruptcy injuries related to ignition switch defects (see http://www.wsj.com/articles/judge-rules-gm-can-keep-its-bankruptcy-shield-1429133128, http://www.marketwatch.com/story/judge-rules-gm-can-keep-its-bankruptcy-shield-2015-04-15-171033758, http://www.nytimes.com/2015/04/16/business/general-motors-wins-ruling-shielding-it-from-most-claims-over-ignition-flaw.html?_r=0).