Denver, CO, 06/11/2014 (Stocksntrade) – A federal judicial-panel has now ordered transferred to the judge in New York over 70 different “economic loss” lawsuits that have been filed against General Motors Company (NYSE:GM) in relation to the company’s recall of 2.6M cars for defects in their ignition switch. This move is definitely a win for the company as well s for the manufacturer of this defective switch- Delphi Automotive LLC. The company is also named in various other lawsuits. Both the companies had been urging that their suits should be heard in NY.
Greg Martin , a General Motors Company (NYSE:GM) spokesman praised the ruling and said that the order affirms what they have been maintaining for such a long time. All the cases should effectively be transferred to the southern-district of New York, as it is in the very best position to co- ordinate with the proceedings of the bankruptcy court. It has also earlier heard the appeals from a sale order and the injunction, and decided many contested matters related to this asset sale & where many of the ignition-switch actions that have been filed to date had been pending.
GM has cited the press report from April that had suggested that the value of the recalled Cobalts has not declined since this crisis started and questioned if the owners have actually faced any economic losses.
The cases will now be heard by the U.S. District Judge Jesse Furman, who has been named to this bench in 2012 by President Obama. He is Jason Furman’s brother. The latter is the chair of the President’s Council of Economic Advisers. Also, Furman is a former law-clerk to the then-Supreme Court Justice-David Souter. All the lawsuits stem from a recall that is related to the older Cobalt, Ion & the other cars in which that vehicle’s ignition switch to also unintentionally from a “run” position to an “accessory” / “off” position, shutting-off the engine & disabling the power steering and the air bags.