GM Judge Won’t OK Probe Until Preliminary Issues Weighed
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General Motors Co. will face questions about whether it defrauded a bankruptcy court in 2009 as a first step toward weighing its responsibility for claims from car owners seeking economic damages from a massive recall.
U.S. Bankruptcy Judge Robert Gerber in Manhattan today said car owners won’t be able to start a probe of the company’s conduct just yet. First, he wants to consider whether GM perpetrated a fraud on his court during its 2009 reorganization and government bailout. His review would draw on bankruptcy law and publicly available information, not an investigation of who knew what when among the Detroit-based car company’s executives.