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July 1, 2015

US: GM pleased judge tosses out ‘ignition switch’ lawsuit

General Motors announced this week a judge in Delaware had dismissed a lawsuit by shareholders seeking to recoup losses stemming from the recall of millions of vehicles with an ignition switch defect linked to deaths.

General Motors announced this week a judge in Delaware had dismissed a lawsuit by shareholders seeking to recoup losses stemming from the recall of millions of vehicles with an ignition switch defect linked to deaths.

The judge’s ruling said the shareholders have not shown any proof that the company’s directors acted in bad faith and dismissed the case, Reuters reported.

Shareholders alleged directors breached their duties by failing to oversee the operations of the company.

The news agency noted the ruling came a month after a US bankruptcy judge put on hold dozens of lawsuits accusing the company of concealing an ignition switch defect while the plaintiffs in those cases appealed an earlier ruling that found their cases were barred.

Three other shareholder derivative actions – one in Wayne County, Michigan and two in Federal District Court for the Eastern District of Michigan – have also been put on hold pending the outcome in Delaware.

GM told Reuters it was pleased the Delaware court dismissed the complaint and hoped the other pending cases would also be dismissed.

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