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Sokolove Blasts GM Bankruptcy Plan

June 30, 2009

Says Plan Undermines Consumer Protection Rights

NEWTON, Mass., June 30 /PRNewswire/ — Jim Sokolove, the Chairman of Sokolove Law, LLC, the leader in the reinvention of how people obtain legal services, today blasted the proposed GM bankruptcy plan which would free the “new” GM from existing product liability claims. General Motors Corp. (GM) bankruptcy hearings began this morning.

In GM’s initial June 1 bankruptcy filing, the company sought to absolve itself of responsibility for all consumer product-liability claims, but, after pressure from U.S. government officials and consumer groups, GM made concessions last Friday to stand behind product liability claims for all GM cars and trucks that are filed after the company emerges from bankruptcy.

According to the Washington Post:

“Accident victims with pending lawsuits and those who had won damages against GM before it filed for bankruptcy protection would still be unable to bring claims against the new GM. They would remain with other unsecured creditors making claims against the “old GM.” As GM’s old estate winds down, those victims are likely to recover little or nothing.”

Sokolove today criticized the plan calling it inexcusable and shortsighted.

“This plan will leave injured consumers with no legal rights whatsoever. It erodes the fundamental rights and protections of consumers under our legal system. Fast tracking these bankruptcy proceedings without thinking of the long term implications put the interests of big business before the rights of consumers and sets a dangerous precedent for our civil justice system.

If General Motors is liable for injuring consumers, they should be held responsible–just as with any other producer of consumer goods in this country. If the plan is approved as it stands now, hundreds of injured consumers with pending claims will be left with no hope of being compensated for their injuries.”

About Sokolove Law

For nearly 30 years, Sokolove Law has reinvented how people obtain legal services. Our mission is to provide equal access to the civil justice system while ensuring superior quality legal representation. As a pioneer in legal advertising, Sokolove Law has grown to be the largest marketer of legal services in the country. Our proven business model matches particular client needs to the more than 400 law firms that we work with. The result is success for our clients and co-counsel. Sokolove Law operates as a limited liability company in all states except Virginia, California, Michigan, and Tennessee, where it operates as a limited liability partnership. Learn more about Sokolove Law at www.sokolovelaw.com

SOURCE Sokolove Law


Source: newswire



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