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GM Asks Judge to Toss Bankrupt Supplier’s Lawsuit

Submitted by jhartgen@abi.org on

General Motors Co. is asking a judge to halt a litigation battle with bankrupt auto-parts supplier Clark-Cutler-McDermott Co., the Wall Street Journal reported today. In recent court filings, GM seeks the dismissal of CCM’s lawsuit accusing the auto maker of lying in pricing negotiations and tricking CCM into entering a contract that saddled the Massachusetts company with debt in the months leading up to its bankruptcy filing. Auto-parts manufacturer CCM filed for chapter 11 protection on July 7, shutting down several weeks later. The 115-year-old company — a GM “Supplier of the Year” four times in the last seven years — blamed its filing on a money-losing contract with GM, which accounted for about 80 percent of CCM’s business.