General Motors Co.’s move in U.S. bankruptcy court to bar lawsuits seeking economic damages tied to its recalls has put the brakes on consumer class actions across the country—at least for the next month.
GM has recalled 2.6 million cars to fix ignition-switch defects that, by shutting off engines and preventing air bags from deploying in accidents, have been linked to 13 deaths. More than 50 class actions allege that GM failed to tell its customers about the defect, which it learned of about a decade ago. The plaintiffs seek to recover for the lost value of cars they owned or leased. Such claims account for most of the lawsuits yet filed.
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