General Motors and those who have sued the automaker over its ignition switch scandal are likely in for series of long legal battles. The trust that holds GM liabilities prior to its 2009 bankruptcy has canceled a pre-determined settlement that would have cost “New GM” $1 billion in stock.
The settlement, in total, called for the trust to accept $10 billion in claims and would have triggered a provision in GM’s bankruptcy that would force the automaker to hand over the $1 billion worth of shares to help pay for the settlement. GM was not pleased and the automaker’s lawyer claimed the entire settlement was worked out between plaintiffs and “Old GM’s” creditors.
Now, the plaintiffs’ lawyer, Steve Berman, plans for even greater legal action that could go as far as seeking the trust’s assets entirely, according to Reuters.
“Game isn’t over,” Berman said. “We had a deal, GM has knowingly interfered with our deal and we intend to take action against GM on various fronts.”
GM, naturally, praised the settlement’s cancellation, which would have resolved 11.9 million economic loss claims and 400 and 500 personal injury and wrongful death claims
“We are pleased with today’s developments,” GM said in a statement. “Now the focus can return to where it belongs, which is the merits of the plaintiffs’ remaining claims. We will demonstrate that those claims lack merit.”