General Motors seeks more protection from suits

General Motors Co. Is asking a US bankruptcy judge to shield it from legal claims for actions that took place before the company's 2009 bankruptcy.
But the reasons behind a company motion filed late Monday are in dispute.
GM says it's only asking the judge to bar claims that some of its cars lost value due to a huge ignition switch recall.
But a lawyer who is suing GM says it's part of a broader strategy to force settlement of lawsuits alleging the faulty switches caused deaths and injuries.
GM is recalling 2.6 million small cars worldwide to replace the defective switches, which the company says have caused at least 13 deaths.

The switches can move from the "run" position to "accessory" or "off," shutting down the engine and knocking out power-assisted steering and brakes.

If that happens, steering can become difficult and drivers can lose control of their cars and crash. If the engine is off, the air bags won't inflate.
The company has admitted knowing about the faulty switches for at least a decade, yet it failed to start recalling the older-model cars until February of this year.
The admission has brought allegations of a cover-up from members of Congress, who earlier this month held hearings on the recall.
The National Highway Traffic Safety Administration, the government's road safety watchdog, and the Justice Department also are investigating GM's delayed recall.

GM contends in its motion that under the bankruptcy, which ended on July 10, 2009, assets and liabilities of the old General Motors Inc. Were split in two, with good assets sold under court order to "New GM" and bad ones and most liabilities going to the "Old GM," which was left behind.
The recalled cars were made and sold by the old company. The new GM, the motion asserts, took on only three categories of liabilities after bankruptcy: Those for post-bankruptcy crashes involving cars made by "Old GM" that caused injuries, deaths or property damage; and warranty and lemon law claims.

"Plaintiffs assert claims for liabilities that, under the sale order and injunction, were retained by Old GM," the motion states. It asks the court to dismiss about 50 class action lawsuits seeking damage for lost car values, and for an order stopping similar new claims.