Denver, CO, 06/10/2014 (Stocksntrade) – The auto motor manufacturing giant, General Motors Company (NYSE:GM) is going to have a tough time facing over 80 civil lawsuits starting Jun 9, 2014 by Manhattan litigators over its alleged involvement in manufacturing defective ignition switches for their cars. These lawsuits are claiming damages of various proportions including economic losses but excluding deaths and injuries. The claims are settlement money for repair costs, depreciated resale value for over 2.6 million cars. On Jun 9, 2014, a seven judge panel had passed a verdict to send these lawsuits to Manhattan since it is the place where GM’s bankruptcy was filed in 2009.
GM’s Approach To The Lawsuit Claims
The legal minds within the company are trying their best to put out the fire in the best possible manner. They plan to insulate the company against cases of vehicles manufactured before 2009 when they had filed for bankruptcy. In the cases of death and injury, General Motors Company (NYSE:GM) plans to engage lawyer Kenneth Feinberg, who handled 9/11compensations, to execute a compensation plan, starting this August. But the automobile’s major setback during the legal proceedings, would be that the knowledge of defective spare parts was available to the top executives and yet they dint do anything about it.
Share Market Unchanged
Even through this crisis, the investors’ belief on General Motors Company (NYSE:GM) remains without wavering. The shares on the market remain stable with a minute change. This behavior indicates strong basis and good forward guidance since the company cannot go to a crisis lower than this. The shares seem to lag behind a bit when Mary Barra, CEO GM, indicated ‘pattern of incompetence and neglect’. But the investors seem to be ready to buy into the market now that the shares have reached its lowest possible value and the analysts have undervalued each of them.