The state of Texas can’t hold “new” General Motors—created after bankruptcy—liable for alleged misconduct and violations that occurred before the asset sale 16 years ago, a bankruptcy court said.
The new GM isn’t responsible for the “bad acts” of the “old GM” under the Texas Deceptive Trade Practices Act, Chief Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York said in a Tuesday opinion.
Glenn held that Texas’ damages statutory theory, which relies on the company’s prior violations, is a form of successor liability barred by a 2009 sale order. The state also …