NEW YORK — Attorneys for Basic Motors on Monday urged a federal chapter decide in Manhattan to throw out a settlement that may require the corporate to pay $1 billion to automotive house owners suing over defective ignition switches.
The carmaker made its argument on the primary day of a scheduled three-day bench trial earlier than Decide Martin Glenn of the U.S. Chapter Courtroom in New York. The trial will decide the validity of a deal the automotive house owners mentioned they reached in August with a belief that holds many GM liabilities from earlier than its 2009 chapter.
The claims stem from GM’s 2014 recall of two.6 million automobiles with faulty ignition switches, together with one linked to 124 deaths.
Attorneys for the automotive house owners say the belief agreed to a deal in August however walked away a number of days later, as a substitute accepting GM’s provide to assist pay for its protection towards the automotive house owners’ claims.
The decide questioned how that took place, noting GM had an curiosity in dissolving any deal that required it to pay extra.
“I’ve bother saying it passes the odor check,” Glenn mentioned, referring to a two-hour assembly between the belief and GM in August, after which the belief dropped the settlement with the plaintiffs.
However attorneys for the carmaker and the belief informed Glenn the belief had each proper to drop the settlement.
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