New GM Car Drivers Can’t Sue for Faulty Switches: Lawyer

Drivers of General Motors Co. cars made after 2009 can’t sue over faulty ignition switches because the company hasn’t made any defective switches since the U.S. government took it out of bankruptcy, a lawyer for GM said in court.

He cited GM’s recall of 2010 Chevy Cobalts, saying the automaker called in the cars because some of them had been repaired with the old, defective switches.

The lawyer, Arthur Steinberg, was responding to an attorney for a customer who asked a judge to let him proceed with a lawsuit while 87 other suits had been stopped, saying that his claim wasn’t related to the 2009 bankruptcy handled by the judge and should be allowed to proceed.

U.S. Bankruptcy Judge Robert Gerber told the customer to hold off from suing, affirming rulings he issued that year barring suits over car prices. The judge has begun the process of deciding whether those rulings will stand after he hears more arguments by customer lawyers and GM.

The suits relate to GM’s initial recall of 2.59 million vehicles with defective switches.

Before it's here, it's on the Bloomberg Terminal.