(Bloomberg) – A federal judge dismissed a swathe of customer claims in the nationwide litigation over General Motors Co.'s deadly ignition switch defect that triggered the recall of millions of vehicles two years ago.
Friday's ruling by a Manhattan federal judge comes two days after an appeals court dealt GM a blow by reviving hundreds of related cases that had been blocked by the carmaker's 2009 trip through bankruptcy court. GM's shifting fortunes in the case come as the Detroit-based company prepares for a third test trial over the flaw, set to start in September. GM won the first two.
Consolidated cases, test trials
U.S. District Judge Jesse Furman, who has been managing hundreds of consolidated cases and is overseeing a series of test trials, targeted one of the plaintiffs' key claims — that customers deserve financial compensation due to the reduction in resale value of the vehicles caused by damage to GM's reputation and brand. The lawyers have argued those claims are worth as much as $10 billion, though GM disputes that figure.
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