GM must face suit claiming it covered up ignition-switch defect

Sun Aug 10, 2014 7:00pm EDT
 
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By Jessica Dye

NEW YORK (Reuters) - General Motors Co has lost its bid to dismiss a lawsuit accusing the automaker of concealing critical evidence about a faulty ignition switch linked to the death of a Georgia woman in 2010.

During a hearing on Saturday, Cobb County State Court Judge Kathryn Tanksley denied GM's motion to dismiss the new lawsuit filed in May by the family of Brooke Melton, according to a statement from the company.

Melton died in March 2010 when the ignition switch on her 2005 Chevrolet Cobalt slipped into accessory mode and the car collided with another vehicle, according to the suit.

Ken and Beth Melton, her parents, had previously sued the company in 2011 and settled in September 2013 for a reported $5 million.

Information that emerged during the original lawsuit - including a design change to the switch  -  helped trigger the recall of 2.6 million GM vehicles, including the Cobalt, and prompted congressional, federal and other investigations into whether the company had withheld knowledge of the problem.

After the recall, the Meltons said they asked GM to withdraw the settlement, but the company refused, according to court filings. The family then filed a new lawsuit in May claiming that the company had fraudulently concealed critical evidence about the switch, and that a GM engineer who testified in the case had lied under oath about the part.

The Meltons' lawsuit said that the company had purposely misled them in order to force them to settle their case.

GM had argued that the case should be dismissed because it had already settled the Meltons' claims over Brooke Melton's death. But Tanksley said on Saturday that the case could move forward, according to GM.   Continued...

 
The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009. REUTERS/Jeff Kowalsky/Files