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GM Moves to Halt Another Group of Suits Tied to Recall

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General Motors Co. is again trying to use "old" GM's chapter 11 case to protect itself from lawsuits related to an ignition-switch defect, this time the suits filed by drivers who got into accidents before the 2009 bankruptcy court sale, the Wall Street Journal reported today. Lawyers for GM said in a court filing on Friday that the wording of the sale order approved by the court places lawsuit liability with the old version of GM, not the new one. Plaintiffs would still be allowed to file claims for accidents as part of a program GM announced late last month, regardless of when their accidents occurred. Friday's filing pertains only to actual lawsuits filed against GM by victims whose accidents occurred before the 2009 sale approval. The issue of whether "old" GM, "new" GM or both GMs are liable is a big one for plaintiffs, regardless of why they are suing. The latest filing cites seven accidents involving Chevy Cobalt cars that were part of GM's recall of 2.6 million small cars for an ignition-switch defect, as well as one 2004 Chevy Malibu, which was also recalled. The drivers of those cars are suing GM without making a clear distinction between "old" and "new" GM, lawyers for GM said in the Friday filing.