Schnader’s Bressler Talks About the GM BankruptcyOn June 2, 2009 by Schnader in News
Schnader’s Barry Bressler was interviewed by the Wall Street Journal’s “Deal Journal” regarding the General Motors bankruptcy case. The article, “GM’s Bankruptcy: What Happens to People Who Had Lawsuits Against GM?” examined the issues facing a group of about 300 people who have sued the auto maker over catastrophic injuries or family members lost in crashes they say were caused by a design defect in various GM vehicles. In bankruptcy, all such suits are stayed and the claims are lumped in with all other unsecured creditors, making it unlikely these people will collect any money from the company, unless a judge orders otherwise.
Mr. Bressler noted that most of the plaintiffs are severely injured as the result of design defects in GM cars. Many lost their limbs, suffer from brain damage or are paralyzed, and the medical bills for a paralyzed victim can easily go over a million dollars. The estimated aggregate value of damages being sought by the 300 plaintiffs is about $1.25 billion.
It was noted that the injured victims are simply looking to have their day in court, and Mr. Bressler went on to emphasize that the precedent set by this case will have a significant impact going forward. “If people have no rights to collect compensation for injuries, they are less likely to buy the cars.”