GM Escapes Pre-Bankruptcy Claims in Texas Data-Selling Lawsuit

The state of Texas can’t hold General Motors liable for alleged misconduct that occurred before the company’s bankruptcy 16 years ago, a court said.

“New GM” isn’t responsible for the bad acts of the “old GM” under the Texas Deceptive Trade Practices Act, Chief Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York said in a Tuesday opinion.

Glenn held that Texas’ damages statutory theory, which relies on the company’s prior violations, is a form of successor liability barred by a 2009 sale order. The state also hasn’t asserted claims solely on post-sale conduct, ...