Attorneys general from 11 states have filed an objection to General Motors’ government-backed bankruptcy plan, arguing the terms of the deal would significantly weaken protections for consumers.
Attorneys general from California, Illinois, and Kansas joined those from eight other states to file objections to GM’s restructuring plan in bankruptcy court Friday.
The state AGs are concerned that provisions of the GM bankruptcy agreement would limit liability for the automaker in lawsuits regarding defective manufacturing.
A consumer group that has led the effort to block the government-financed bankruptcy praised the move Monday.
“It is outrageous that the bankruptcy plan requires GM to fix defective parts, but leaves consumers unprotected if they get hurt by defective cars,” said Joanne Doroshow of the Center for Justice and Democracy. “We commend the Attorneys General for standing up for consumers at this critical time.”