NO CLE - ABI-Live: 2nd Circuit Decision in GM Increases Risk of Successor Liability for Purchasers

John Hutton and Henry Jaffe will discuss the recent Second Circuit successor liability decision in the General Motors case, which reversed the decision of the bankruptcy court, and exposed “New GM” to successor liability claims by various categories of plaintiffs who sustained (largely economic) injuries prior to the sale as a result of the ignition switch defect, but did not receive actual notice of the sale. The presenters will discuss the main issues and arguments presented and addressed in the GM successor liability decision, and will discussing the potential impact of the Second Circuit’s ruling. Such issues include: (1) notice/due process (and remedies related thereto), (2) the requirement to show prejudice, and the Second Circuit’s treatment of the prejudice issue; (3) the ability to sell free and clear of in personal liabilities; and (4) equitable mootness.