Ruling Could Expose GM To Large Verdicts In Ignition Cases

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DETROIT (AP) - A federal bankruptcy judge says people suing General Motors over faulty ignition switches may seek punitive damages that could cost the company millions of extra dollars.

When General Motors emerged from a 2009 bankruptcy, it became known as "New GM" and was shielded from the old company's liabilities.

However, Judge Robert Gerber in New York ruled Monday that employees and knowledge transferred from the "Old GM" to "New GM" and that plaintiffs may seek punitive damages if they can show that "New GM" knew of the faulty switches but covered up that knowledge.

The switches are responsible for at least 169 deaths and hundreds of injuries.

Texas attorney Robert Hilliard, who has several wrongful death and injury lawsuits pending against GM, said the ruling was a complete win for plaintiffs.

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