GM Criticizes $1 Billion Settlement Related to Faulty Ignition Switches

GM lawyer Richard Godfrey scrutinized the agreement, contending that U.S. District Judge Jesse Furman in Manhattan gave the company no say in the deal.
By Giovanni Bruno ,

Plaintiffs suing General Motors (GM) - Get Report claiming the automaker's vehicles had defective ignition switches and other alleged vehicle defects have reached a $1 billion settlement ordering the company to turn over that amount of stock, Reuters reports.

Despite the settlement, GM lawyer Richard Godfrey scrutinized the agreement, contending that U.S. District Judge Jesse Furman in Manhattan gave the company no say in the deal.

The agreement was negotiated between the plaintiffs and a trust established for creditors of "old GM," which Godfrey says contains liabilities pre-dating the automaker's 2009 bankruptcy.

Godfrey argued the settlement was a result of a conspiracy between the plaintiffs and the trust, and "a complete surrender and sellout using new GM's money."

GM affirmed in a statement it would contest the settlement in court, calling it a "contrived scheme" doomed to fail.

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