Bankrupt and No Longer Liable for Injuries or Death from Defective Products from Pre-Bankruptcy Days
In what seems a futile attempt to save the crumbling economy, the U.S. poured a great deal of tax dollars to keep the auto-industry afloat. The car company GM received $49.8 billion dollars and Chrysler received $15.5 billion. In addition, Chrysler Financial the finance company for the company received $1.5 billion and GMAC, the lending company for both GM and Chrysler received $13.5 billion in government bailout money. The government distributed this money to GM, Chrysler, and other companies in the hopes that they would make it through the economic crisis and continue to manufacture products and provide jobs. After taking their share of bailout funds, GM and Chrysler filed for bankruptcy.
The Ad Hoc Committee of Consumer Victims of GM and Chrysler recently put out an advertisement which highlights the serious issues that arise from these two companies declaring bankruptcy. GM and Chrysler no longer protect consumers that are injured or killed from a product defect that existed pre-bankruptcy. Under the bankruptcy plan for both companies, consumers are no longer protected if they or a loved one are injured or killed due to a defect on a GM or Chrysler vehicle that existed pre-bankruptcy. This is disheartening considering that in between Quarter 3 of 2003 and Quarter 4 of 2008; Chrysler had approximately 3,497 death and injury claims. GM had an estimated 15,284 death and injury claims during the same time frame. This means that the two companies accounted for 47% of all claims filed against auto manufacturers between 2003 and 2008.
According to an article on June 23, 2009 from United Press International, a recent safety report has said that more than 3,400 U.S. citizens could be injured or killed in the next year by defective cars produced by GM and Chrysler. What do consumers do about future injury and death related claims? Who do the consumers turn to when they are hurt from a defective product? These two companies deny claims related to a product defect from pre-bankruptcy days, saying it is no longer their problem even though they are responsible. Other than the insurance companies, consumers who have been injured or have family members who were killed by pre-bankruptcy defective products now have no one to pay for the costs related to their injuries.
The York Law Corporation is a national leader in prosecuting consumer class action lawsuits. Our firm believes in protecting consumers from being taken advantage of by large corporations. We specialize in cases where businesses have unfair or deceptive business practices that take advantage of consumers.
York Law Corporation