On April 15, 2015, a federal judge in Detroit ruled that a 2009 bankruptcy order shields General Motors from billions in personal injury claims stemming from defective ignition switches in older, smaller vehicles.

Judge Robert Berber in New York, who handled the company's government-funded bankruptcy case six years earlier, ruled that plaintiffs who are claiming a loss in the value of their cars have the right to sue General Motors Co., however, only for the company's actions that occurred after it emerged from bankruptcy in 2009.

This ruling was a victory for GM; one of the plaintiff's attorneys says that the ruling will shield GM from as much as $10 billion in legal liabilities. It also opens the door for costly claims for the decreased value in these vehicles.

In 2009, GM emerged from bankruptcy free from any liabilities that existed before the bankruptcy. The plaintiff's argued that GM misled the courts six years ago, and they contend that while GM knew about the defective switch, the company failed to disclose the issue to the courts.

The switches, which have been known to cause GM cars to stall unexpectedly, have been linked to 84 deaths so far.

Over 140 Lawsuits Filed Against General Motors

The attorneys for plaintiffs in nearly 150 lawsuits argued that their clients never had the opportunity to dispute the bankruptcy order. They say that's because they weren't notified about the bankruptcy action because the company concealed the defective switches.

On the other side, the new GM says that when it purchased assets from the old GM, the new company acquired them "free and clear" of any liabilities from before the bankruptcy.

According to Texas Attorney Robert Hilliard who is representing multiple injury and wrongful death plaintiffs in actions against GM, the ruling cuts off court options for victims injured in crashes that occurred before the company emerged from bankruptcy in July of 2009.