March 19, 2014 / 9:45 PM / in 4 years

GM must pay for pre-bankrutpcy ignition deception -lawsuit

NEW YORK, March 19 (Reuters) - General Motors Co should be held liable for allegedly concealing ignition problems prior to its 2009 bankruptcy, a lawsuit filed Wednesday said.

The ignition problems led to the recall of 1.6 million vehicles last month.

The lawsuit, filed in federal court in California, said that plaintiffs should be allowed to sue over the pre-bankruptcy actions, “because of the active concealment by Old GM and GM.”

The proposed class action is one of several filed by car owners who claim the recent recall caused their vehicles to lose value. The terms of GM’s bankruptcy generally bars lawsuits against the post-bankruptcy GM stemming from accidents or incidents that occurred prior to July 2009.

Reporting by Jessica Dye; editing by Andrew Hay

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