GM said it asked a federal bankruptcy court in New York—the same one which granted GM the right to waive all liability for products built before its $50 billion taxpayer-funded bankruptcy in June 2009 to exclude any lawsuits that don’t involve accidents or injuries.
If approved, GM could wipe out a $350 million class-action lawsuit in California alleging GM’s “willful nondisclosure of critical safety information” and two other suits in Michigan and Texas alleging lost resale value, along with any number of individual cases now or in the future. Because GM is technically a new company and separate from the “old GM”—which was renamed as Motors Liquidation Company and funded with four leftover trusts—it may only have to pay pennies on the dollar if a judge approves the motion.
Read more on Car and Driver.
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