GM Not Liable For Pre-Bankruptcy Settlement

Law360, New York (September 30, 2013, 6:18 PM EDT) -- General Motors LLC is not liable for a settlement its pre-bankruptcy predecessor reached in a consumer class action over faulty transmissions, a New York federal judge ruled Monday.

U.S. District Judge Jesse M. Furman said General Motors, known as New GM, does not have to honor an estimated $61 million settlement Old GM reached over defective transmissions in some 2002 to 2005 Saturn cars made by the automaker. The judge’s decision upholds a ruling from U.S. Bankruptcy Judge Robert E. Gerber.

The case stems from a...
To view the full article, register now.