2d Cir: Tort Claims Can Proceed in GM Ignitition Switch Products Cases, Despite Bankruptcy

This week, the Second Circuit endorsed the general proposition that certain types of bankruptcy asset sales bar successor liability.  Regarding claims against GM based on ignition switch defects, however, the court ruled the 2009 bankruptcy of “Old GM” does not bar those cases against “New GM”, the company that bought Old GM’s assets.  The court based its ruling on the fact GM hid the defect at the time of the bankruptcy proceeding.  The New York Times has more.