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Delaware Court Upholds Dismissal of GM Shareholder Suit

By on February 12, 2016

DOVER, Del. – 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 $5 billion.


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