A group of U.S. senators on Friday urged the Department of Justice to oppose any efforts by General Motors Co. to skirt financial responsibility related to the company's failure to promptly recall vehicles with ignition switch problems linked to 13 deaths, Reuters reported on Saturday. The five Democratic senators, in a letter to Attorney General Eric Holder, said that the Justice Department should "intervene in pending civil actions to oppose any action by GM to deny responsibility for damages." The senators were referring to the possibility that GM could use a legal loophole to avoid paying damages authorized by pending lawsuits. The company was reorganized in bankruptcy proceedings, with the "new" GM not responsible for the "old," pre-2009 GM. The senators also called on Holder to force GM to establish a victims' compensation fund and to ensure that consumers are adequately warned about driving cars that could have faulty ignition switches.
http://www.reuters.com/article/2014/04/11/gm-recall-senators-idUSL2N0N3…
For further analysis, make sure to attend the "Large Complex Trusts: A General Motors Case Study" panel at ABI's Annual Spring Meeting. This panel will discuss the General Motors bankruptcy case with an in-depth discussion about the issuance of public units in a major bankruptcy. The session will also include the challenges addressed by the trust such as liability claims. For more information or to register, please click here: http://www.abiworld.org/ASM14/