Boston, MA 08/11/2014 (wallstreetpr) – Bad fortune is not letting General Motors Company (NYSE:GM) take relief even for a moment, the latest example of it is a lawsuit. According to reports, GM has lost its recent bid to dismiss a lawsuit that it was filed by the family of a Georgia woman who died in 2010. The main reason behind the death was reported as a faulty ignition switch.
How Did It Started:
In a hearing that was held on Saturday, Kathryn Tanksley; Cobb County State Court Judge denied the appeal of the auto maker against a lawsuit that was filed in the month of May by the family of Brooke Melton. She died in an accident in 2010 when the ignition switch of her 2005 Chevrolet Cobalt went into accessory mode automatically. Because of this incident, her car collided with another car causing Melton’s death right on the spot.
Reports claim that her parents Beth and Ken Melton earlier filed a lawsuit against the company in 2011 and settled for $5 million in September 2013. The information that was presented in the original lawsuit prompted the company to recall around 2.6 million vehicles. That lawsuit created a base for federal and congressional investigations that created a lot of problems for the company.
According to reports filed in the courtroom, the Meltons asked the company to withdraw the settlement, but the company denied doing so. When Melton family didn’t get any response from the General Motors Company (NYSE:GM), both Beth and Ken Melton again decided to file a new lawsuit against the company in the month of May. It claimed that the company had canceled the critical evidence about the ignition switch frequently. The lawsuit also claimed that the design engineer who testified the switch in this case lied in courtroom. According to Melton family, GM forcefully misleads them to settle the case.
General Motors Company (NYSE:GM) appealed that the case should be dismissed as it already settled the lawsuit, but court denied GM’s appeal.