By Karina Basso  |  September 8, 2014

Category: Consumer News

GM ignition switch recall class action lawsuitA group of plaintiffs are attempting to push forward with their GM ignition switch recall class action lawsuit and have asked a New York bankruptcy court to allow their putative class action litigation to proceed despite GM Motors LLC’s attempts to claim bankruptcy protection against the ignition switch allegations.

Plaintiffs Ishmail Sesay and Joanne Yearwood filed a no-stay pleading motion in August alleging that the wrongful acts against the plaintiffs and the Class involving the faulty ignition switch found in several GM car models occurred after the bankruptcy.

Sesay and Yearwood also claim in their ignition switch class action lawsuit that GM cannot dodge responsibility  to their consumers on the basis that the vehicles with alleged ignition switch defect were sold to a dealership after the GM bankruptcy and asset sale.

According to the ignition switch class action lawsuit, Sesay and Yearwood allege that “the Sale Order does not immunize Non-Debtor GM [New GM] for any wrongdoing it commits.”

“The claims the Sesay Plaintiffs bring do not fall within the scope of the Sale Order because they neither allege, nor depend, upon successor or transferee liability, they did not arise before the ‘closing date,’ and they do not implicate any past liability Debtor GM [Old GM] might have had in any way,” they wrote.

“The claims they wish to bring only arose when Non-Debtor GM came into being and allegedly began concealing and suppressing material, and potentially fatal, safety defects from them,” they add in their motion.

Sesay purchased a 2007 Chevrolet Impala from an acquaintance in 2012 in New York; Yearwood purchased a 2010 Chevrolet Cobalt from a Maryland dealership in April 2010. They allege that both cars contain the ignition switch defect.

Sesay and Yearwood seek to represent themselves and a Class of similarly situated GM vehicle owners who were not made aware by New GM of the possible risks involved with using their GM cars. The plaintiffs allege that in doing so, New GM violated the Racketeering Influenced and Corruption Organization Act, and a number of other state laws.

The GM Ignition Switch Class Action Lawsuit is In re: Motors Liquidation Co., Case No. 1:09-bk-50026, in the U.S. Bankruptcy Court for the Southern District of New York.

GM Ignition Switch Recall

Throughout 2014, GM has faced major investigation and class action lawsuits regarding massive vehicle recalls and a faulty ignition switch design. During operation, the ignition switch is likely to go from the on to the off position when just a little bit of weight is added to the key, such as from a keychain. If the ignition switch turns off, it turns off the vehicle, which not only makes it difficult for a driver to maneuver their car out of danger, but also disables the safety features in the affected GM vehicles, such as the airbags.

Over 29 different GM car models were recalled this year alone due to the presence of the ignition switch defect.

The recalled vehicles found to have the alleged ignition switch failure sold abroad and in the United States include these models:

  • 2005-2007 Chevrolet Cobalt
  • 2005-2007 Pontiac G5
  • 2003-2007 Saturn Ion
  • 2006-2007 Chevrolet HHR
  • 2005-2006 Pontiac Pursuit
  • 2006-2007 Pontiac Solstice
  • 2007 Saturn Sky

This May, GM recalled an additional 284,000 older GM car models, which include Chevrolet Aveo and Opta made from 2004-2008. Although these cars do not have the ignition switch failure, they allegedly contain another defect which causes the daytime running lights to overheat and combust.

In general, GM ignition switch lawsuits are filed individually by each plaintiff and are not class actions.

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