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GM Wont Waive Bankruptcy Shield in Pre-2009 Ignition Switch Suits

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Amid calls for his firing for his department’s role in not revealing a safety defect linked to 13 deaths, General Motors’ top lawyer said yesterday that the company won’t waive its bankruptcy protection from court claims linked to millions of defective vehicles, the Detroit Free Press reported today. GM’s general counsel, Michael Millikin, told a U.S. Senate panel that it will only agree to pay claims processed through a fund created by the automaker and run by compensation expert Ken Feinberg. For other claims connected to the ignition defect from before its bankruptcy, GM plans to invoke its liability shield, Millikin said. Millikin also said GM will not unseal earlier legal settlements linked to the defect or release documents made available to former U.S. Attorney Anton Valukas.

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