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Lawyers: GM seeks bankruptcy shield from lawsuit

DETROIT — Lawyers for a Georgia family trying to reopen a wrongful-death lawsuit say General Motors is trying to move the case to federal court so it can use bankruptcy to shield itself against the claim.

Lawyers Lance Cooper and Jere Beasley said GM’s court filings run counter to a promise made by chief executive Mary Barra to fairly compensate families of people killed or those injured in crashes tied to defective ignition switches.

A bankruptcy judge in New York ruled in 2009 that GM is shielded from claims stemming from cars made before the company emerged from bankruptcy protection. Instead, the claims go against the old GM, which has limited assets. The judge now is being asked to decide if he will allow claims against the new company. Cooper and Beasley say moving the case to federal court would allow the company to use the bankruptcy to send claims to the old GM.

Ken and Beth Melton sued GM three years ago in Georgia in the death of their daughter, Brooke Melton, in 2010. She died when her 2005 Chevrolet Cobalt crashed. The lawsuit alleges she was killed after the car lost power due to a faulty ignition switch. The Meltons settled in September, but Cooper and Beasley in May sought to reopen the case, alleging GM concealed evidence.

GM has recalled 2.6 million cars to fix the switches.