GM Thwarts Plaintiffs’ $1 Billion Accord with Old GM Trust

General Motors Co. thwarted a $15 million settlement between the company’s bankruptcy trust and thousands of plaintiffs that would have forced the automaker to contribute $1 billion in stock, prompting claims of a secret plot cooked up behind closed doors (In Re: General Motors Ignition Switch Litigation, S.D.N.Y., 14-2543, 8/17/17).

The now-derailed deal was intended to resolve hundreds of personal-injury cases stemming from GM’s faulty ignition switches, as well as a class-action suit over millions of vehicles that allegedly lost value due to a series of recalls in 2014. In a letter filed Aug. 17 in U.S. Bankruptcy ...