GM Faces New Court Fight Over $1 Billion Trust Settlement (1)

General Motors Co. could be forced to contribute more than $1 billion in new stock to the trust handling the automaker’s bankruptcy claims if a judge approves a settlement reached April 25 with legacy customers who sued years ago over faulty ignition switches.

The accord sets up a possible courtroom clash between the customers and GM, which has previously challenged such a stock contribution. The deal was reached April 25 between Wilmington Trust and car owners who purchased their vehicles before July 10, 2009, plaintiffs’ attorney Steve Berman said.

Wilmington Trust, the M&T Bank Corp. unit that manages the claims ...