GM Bid to Freeze Ignition Suit Is Called a ‘Red Herring’
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General Motors Co.’s bid to freeze a lawsuit over faulty ignition switches may compromise public safety, plaintiffs told a judge in California, calling the automaker’s claim that its 2009 bankruptcy shielded it from the old GM’s liabilities “irrelevant” and a “red herring.”
GM two days ago defeated a consumer effort to have a court order the company to tell owners of recalled vehicles to stop driving their cars until the defect is fixed. A federal judge in Corpus Christi, Texas, said U.S. regulators are better situated than courts to manage recall terms.