GM Judge Says Hiding Switch Defect Would Have Been Fraud

General Motors Co. customers who sued the automaker over fallen car prices might have a stronger case if they could prove company executives defrauded the court about a faulty ignition switch when testifying during its 2009 bankruptcy, a judge said.

If then-Chief Executive Officer Fritz Henderson “knew about the switch problem and intended to keep it from me, that might constitute fraud on the court,” U.S. Bankruptcy Judge Robert Gerber said at a hearing today in Manhattan.