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New GM Can Face Nonswitch Claims For Post-Sale Conduct

Law360, New York (June 7, 2017, 6:49 PM EDT) -- The 2009 bankruptcy sale of General Motors does not shield the carmaker from non-ignition switch-related product liability claims that are based solely on GM's alleged conduct occurring after the sale, a New York bankruptcy judge ruled Wednesday, clearing the way for millions of claims to proceed against the successor.

Playing the role of litigation gatekeeper, U.S. Bankruptcy Judge Martin Glenn determined that the postbankruptcy version of GM, commonly referred to as New GM, cannot use the “free and clear” sale provisions in its agreement to purchase...
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