Bloomberg Law
Aug. 11, 2017, 7:07 PM UTC

GM Accuses Bankruptcy Trust of Secret $1 Billion Stock Plot

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.

The settlement between the plaintiffs and the trust for old GM is due to be signed Aug. 15, attorney Steve Berman said in a phone call. The deal will resolve ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.