The General Motors/GM Recall

Bloomberg has a pretty good primer on the massive GM recall-let's take a closer look at the facts:

General Motors Co. announced in February it was recalling 1.6 million vehicles because of a defect in their ignition systems linked to at least 12 deaths. Claims over deaths or economic losses occurring before July 2009 were blocked by a bankruptcy judge in approving the sale of assets from the former GM to the current auto maker. Lawyers alerted by the recall are now examining pre-bankruptcy deaths and claims to get the ban lifted. Some have used online postings to acquire clients with banned claims.
By court order, the new GM can't be held responsible for any product-related liabilities that arose before July 10, 2009. How convenient-The bankruptcy judge set up a mediation process in 2010. The claimants had to be willing to accept a reduced amount acceptable to the old GM to start negotiating.

By the way, you and I bailed these folks out so they could continue their evil ways! One wonders if there is a way to get around the bankruptcy ban? Here's the scoop:

 Challenging GM’s liability immunity would require asking the judge who oversaw the historic U.S.-backed bankruptcy to reconsider its ban on claims. Harvey Miller of Weil Gotshal & Manges LLP, the automaker’s bankruptcy lawyer, said the time to revoke court orders dating from GM’s bankruptcy “has long passed.” He said the company’s creditors diligently examined its liabilities and potential exposure for possible torts. “No pertinent information was withheld from the court during the GM Chapter 11 case,” he said.

Sure Harvey, you're very credible! Well, here come lawyers-I kinda hope they bring GM to their knees;)

You can read the whole story here: The GM Recall: Which Claims Are Barred, What the Lawyers Are Trying.