Bankruptcy judge rules against GM asbestos victims

Jul 28, 2009

Robert Gerber, a Federal Bankruptcy Judge in New York, has ruled against an appeal filed on behalf of accident victims and asbestos victims to protect their claims against General Motors (GM) in the sale and reorganization of the company. Lawyers for the claimants argued that GM should continue to be responsible for toxic tort and product liability claims that were filed before the company’s reorganization.

As of the end of March, it is estimated that future product liability claims filed against GM could cost $934 million, and asbestos-related claims could cost $627 million. Asbestos exposure can cause serious diseases like mesothelioma and asbestos-related lung cancer. GM filed for bankruptcy protection on June 1, 2009 and closed the sale of their assets to the U.S. Treasury Department quickly on July 10.

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