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General Motors LLC — the New GM — is subject to a multitude of lawsuits stemming from its alleged wrongdoings and the alleged wrongdoings of its predecessor, General Motors Corp. — the Old GM — which sold its assets to New GM pursuant to a § 363 “free and clear” sale in bankruptcy in 2009. The U.S. Court of Appeals for the Second Circuit previously held that certain plaintiffs could not be barred by the “free and clear” provisions of the 2009 sale order (a decision the U.S. Supreme Court elected not to review). Following the denial of its petition for certiorari, the New GM is attempting to resurrect its principal defense against these lawsuits, arguing that the tort claims brought against New GM are barred on a new theory based on a recent Second Circuit decision in In re Tronox, 855 F.3d 84 (2d Cir. 2017).
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By Steven P. Benenson
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