Would-be plaintiffs barred from suing GM

General Motors won a significant victory in its campaign to limit the fallout from its botched handling of faults with some vehicles' ignition switches when a judge refused to allow would-be plaintiffs to sue the old, pre-bankruptcy company.

Robert Gerber, a judge in the New York bankruptcy court that handled the company's government-managed bankruptcy in 2009, denied the request by lawyers for the injured and the families of the dead to reopen the bankruptcy case.

The plaintiffs had argued that, because GM hid information about the faults - which had been suspected since 2001 - they should be allowed to sue the old, pre-bankruptcy company for deaths and injuries that occurred before the bankruptcy.

The judge, as had been widely expected, said the claims were ruled out under the ruling by which the bankrupt company's business was sold to the new General Motors.

GM has set up a voluntary compensation scheme for those affected, regardless of whether their crashes happened before or after the bankruptcy.

It has so far recognised that the fault - which could cause an ignition switch to move from the "run" to "accessory" position while the vehicle was in motion - was responsible for at least 84 deaths.

GM welcomed the decision, although it is bound to be subject to appeals.

"Judge Gerber properly concluded that claims based on Old GM's conduct are barred, and that the sale order and injunction will be enforced for such purposes," the company said.

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