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GM judge throws out key ignition claim in second trial

General Motors Co. won a partial victory in its second trial over faulty ignition switches as a judge threw out a key fraud claim against the automaker.

By Erik Larson, Bloomberg, Margaret Cronin Fisk | Updated on March 28, 2016
GM is challenging suits that it believes wrongfully blame the ignition flaw for crashes, injuries and deaths.

(Bloomberg) — General Motors Co. won a partial victory in its second trial over faulty ignition switches as a judge threw out a key fraud claim against the automaker, a company spokesman said, boosting the company’s outlook for resolving hundreds of similar cases on better terms.

A federal judge in Manhattan on Monday dismissed the fraud claim, granting a GM motion that driver Dionne Spain hadn’t presented enough evidence to show that the company made false or misleading statements about the defect in its cars. U.S. District Judge Jesse Furman didn’t issue a written opinion. The ruling follows Furman’s earlier rejection of other claims, including a demand for punitive damages.

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