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Update: Some victims and families barred from suing GM over defect

Update: Some victims and families barred from suing GM over defect

Christian Raniolo was killed in 2007 when his Chevy Cobalt crashed into a tree.

In April, we learned that federal bankruptcy judge Robert E. Gerber ruled that the liability shield in the 2009 agreement that lifted G.M. from bankruptcy should be allowed to remain in place. This means if the victim’s accident occurred prior to July 10, 2009, they cannot sue the new GM for the old GM’s alleged actions, they would have to sue the Old GM.

According to WSOC TV , victims and their families are seeking a total of $32 billion and that Old GM only has $9.25 billion in assets meaning, some of the victims and families will be barred from suing GM over the defective ignition switches.

When GM filed bankruptcy on July 10, 2009, they emerged as a new company, the “New GM.” This ruling is allowing GM to get away with murder, according to the family of Christian Raniolo, who died in a 2007 crash. Christian was driving his 2006 Chevy Cobalt when his family believes the ignition switch slipped, causing his car to lock up, veer off the road and hit a tree. Christian was only 25 years old at the time. His family is using a law firm used by many other plaintiffs and plans to appeal the judge’s ruling so they can sue the new GM.

If your case happened before July 10, 2009, you may still be able to recover money two ways:

• Sue the old GM although they may not have enough funds for everyone
• File a claim with the GM Ignition Compensation Claims Resolution Facility (the deadline passed a few months ago but if you already did this, you can follow up on your claim here.)

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