Darren Azman and Megan Preusker wrote this bylined article on the Second Circuit decision which held that the successor company to formerly bankrupt General Motors was not immune from plaintiff claims over alleged defective ignition switches. Because the court held that “the ‘free and clear’ provision in a bankruptcy court sale order did not bar successor liability claims brought against a purchaser by tort claimants,” the authors wrote, such purchasers “should conduct careful diligence regarding potential claims against the debtor.”
