Garrett Motion Dodges Asbestos Liability Securities Suit for Now

Garrett Motion Inc. will escape a class action over its disclosure to investors of predecessor Honeywell International Inc.'s liabilities, but the plaintiffs will have the opportunity to amend their complaint, a federal court in New York said Thursday.

Honeywell spun off its technology and automotive division into Garrett in 2018 to avoid billions of dollars in asbestos-related liability. As a result Garrett held a $1.6 billion credit agreement and nearly $250 million in tax liabilities.

“To be sure, reasonable people may disagree as to the propriety of the move of spinning off a company to skirt asbestos-related liability,” but that’s ...