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Delaware court upholds dismissal of GM shareholder suit

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AP Dover
Delaware's Supreme Court has upheld the dismissal of a lawsuit filed by General Motors shareholders over faulty ignition switches.

After hearing arguments this week, the court affirmed a judge's ruling from last summer.

The judge said the plaintiffs failed to satisfy a requirement that a shareholder suing on behalf of a company and seeking to hold top officials accountable must first demand that the board take action itself, or demonstrate why such a demand would be futile.

The faulty switches have been blamed for scores of deaths and injuries. GM knew about them for more than a decade but didn't recall them until early 2014.
 

The company said last year that the scandal, which prompted hundreds of lawsuits and a federal criminal probe, has cost it more than USD 5 billion.

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First Published: Feb 12 2016 | 11:32 PM IST

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