General Motors, embroiled in litigation and regulatory scrutiny because of a defective ignition switch in millions of cars, moved last week in bankruptcy court to be shielded from liability for incidents that took place before July 10, 2009, which is when the company emerged from bankruptcy restructuring, The New York Times reported. The protection already exists in the restructuring agreement, but a coalition of eight class-action plaintiffs argue that part of the agreement should be voided, The Times further reports. The plaintiffs accuse "G.M. of committing bankruptcy fraud by not disclosing potential liabilities" from the faulty switch. G.M. has been aware of problems with the switch for more than a deacde before recalling vehicles with the problematic part, The Times also reports. G.M., however, is not seeking the waiver of liability regarding personal injury cases.
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