Old GM says New GM lied, should pay $10B in lost-value claims

General Motors is facing a new enemy in its ongoing court battles, thrown under the bus by the ‘Old GM.’
The pre-bankruptcy entity, which still lives on as a trust, has accused the ‘New GM’ of illegally hiding the defect during the bailout proceedings. The trust argues that the surviving company is consequently responsible for paying lost-value claims and other compensation related to the ignition-switch defect.

The Old GM’s position does not come as much as a surprise, as the New GM asked courts to redirect customer lawsuits to the pre-bankruptcy company. The Old GM is responsible for managing old debts, however it claims to be short on funds to pay damages in a flurry of lawsuit.

“New GM’s request exceeds the bounds of both constitutional due process and the sale order, and therefore, must be denied,” the trust wrote in a filing, as quoted by Bloomberg.

GM has continued to defend its legal position, noting in a follow-up statement that the issues “will be decided by bankruptcy court.” The court’s decision will be significant, potentially exposing the company to claims worth $10 billion.