Like a GM automobile, claims against the company arising from its faulty ignition switches might unexpectedly stop working.
While GM is talking a big game about compensating those who suffered damages due to the company’s defective cars, GM’s definition of “damages” is cleverly designed to save the company billions.
As you might remember, GM filed for bankruptcy about five years ago. “Old GM” sold all of its valuable assets to “New GM” — which was a federally backed company. All of Old GM’s bad assets and liabilities were handled through the chapter 11 bankruptcy process. In simplified terms, that means that anybody who had a beef with Old GM needed to settle their business with the company in 2009.
That’s bad news for some people who bought faulty GM cars.