GM Motions to Move Suit to Bankrupcy Court | News | HMG LLP

Texas Lawyer Blasts GM’s Motion To Move Class Action Suit To Bankruptcy Court

August 31, 2017

CORPUS CHRISTI, Texas, April 22, 2014 /PRNewswire/ -- Today, Hilliard Munoz Gonzales LLP (HMG) responded to General Motors' motion to transfer the Texas lawsuit regarding GM vehicles with defective ignition switches to Bankruptcy Court.

GM IS BONE-HEADED AND MORALLY BANKRUPT

Bob Hilliard, lead attorney in the action and partner at HMG, contacted GM's legal team via email, saying, in part:

"General Motors exhibits a stunning level of corporate entitlement and arrogance by even attempting such a bone-headed maneuver. GM's legacy will always be one of epic betrayal of its customers and its country."

"it is simply mind-boggling that (Mary Barra), as GM's CEO, would authorize such a short-sighted end-run around her own recent and unequivocal promise (to take responsibility for the harm caused by the defective ignition switches.)"

"GM allowed this defect onto our roads knowing death would follow and now blithely turns its corporate back on the decades-long human consequence of such criminal conduct."

"Know this, after today there is at least one bankruptcy label the entire country believes: GM is morally bankrupt."

GM'S THREE-PART DEFENSE UNRAVELING

Hilliard said, "GM contends we are suing the Old GM. We're not. Our claims are against the New GM." He added the New GM "Trifecta" defense is coming unraveled:

"First, New GM hired the entire Old GM engineering department that knew of the dangerous defect and suborned perjury of at least two of those employees in depositions to keep the secret, only to admit before Congress that they were lying."

"Second, New GM demanded and got all the written evidence under its control so that even those trying to get to the truth through Old GM had no access to the incriminating documents. Now they are being forced to produce those documents under threat of ongoing criminal investigations."

"Finally, New GM thought it had a 'magic bullet' in the bankruptcy court sale order allowing discharge of all fraudulently concealed claims. Even the bankruptcy court now says its jurisdiction over creditors' disputes with New GM and New GM's post-sale conduct is clearly debatable."

GM'S CALLOUS DISREGARD FOR SAFETY

New GM sold inventoried ignition switches that it knew were dangerously defective and failed to act on Old GM and New GM's recall obligations regarding the faulty switches.

Hilliard said that New GM is continuing Old GM's callous disregard for the safety of millions of Americans who continue to drive GM vehicles with defective ignition switches. He continued to stress:

"Everyone who owns one of these recalled vehicles needs to park it now! When this defect occurs, the power steering will not work, the power brakes will not work, and the airbags will not deploy!

"Driving a recalled GM vehicle is like carrying a stick of dynamite with a slow-burning fuse. When it goes off it will be sudden, violent and deadly."

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