A bankruptcy judge has ruled that people suing General Motors over faulty ignition switches can seek punitive damages, The Associated Press reported yesterday. When GM emerged from its 2009 bankruptcy, it became known as “New GM” and was shielded from liabilities of the old company that was left behind. But Judge Robert E. Gerber ruled that employees and knowledge transferred from “Old GM” to the new company, therefore plaintiffs can seek punitive damages if they can show that New GM knew of the faulty switches but covered it up. The ruling has the potential to open GM to large jury verdicts, because the company has admitted knowing about the faulty switches for a decade or more but failed to recall the cars until February 2014. In a statement, GM said that the ruling was not a victory for those suing the company. Although the court ruled that New GM could be liable for punitive damages for claims based solely on its conduct, “plaintiffs to date have not established any such independent claims against New GM,” according to a statement by GM.
