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GM Accuses Bankruptcy Trust of Secret $1 Billion Stock Plot

  • Accord would force new GM to make big payment to plaintiffs
  • Old GM close to $15 million settlement over ignition fault
The headquarters of General Motors Co. in Detroit.
Photographer: Jeff Kowalsky/Bloomberg
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General Motors Co. accused the trust set up to handle its bankruptcy claims of secretly plotting with plaintiffs’ attorneys to make it pay $1 billion in stock as part of a $15 million class-action settlement.

The accord, revealed at a hearing Friday in federal court in New York, will pit GM against the "Old GM" General Unsecured Creditors Trust for the first time since the 2009 bankruptcy sale created the split to save the company.