Judge Denies Request to Oust Lawyers Suing GM in Ignition Case

By Sara Randazzo 

A federal judge denied efforts by a plaintiffs' lawyer to upend ignition-switch litigation against General Motors Co., calling a request to remove the lead lawyers from the case little more than "Monday morning quarterbacking."

Georgia attorney Lance Cooper, who helped uncover an ignition-switch defect linked to roughly 2.6 million older GM cars, had recently called for the ouster of three plaintiffs' lawyers leading consolidated litigation against the auto maker in New York federal court.

The request came in the wake of an abrupt ending for a trial that was dismissed after GM uncovered evidence that an Oklahoman postal worker blaming the company for injuries sustained in a car crash had committed fraud.

On Wednesday, U.S. District Judge Jesse Furman shot down all of Mr. Cooper's allegations against attorneys Robert Hilliard, Elizabeth Cabraser and Steve Berman, saying the Georgia lawyer provided "little or no evidence" to support "(sometimes wild) accusations of impropriety and underhandedness" by the three lead counsel.

"With the benefit of 20/20 hindsight, it is easy to criticize some decisions that lead counsel have made in this complex and multifaceted litigation," Judge Furman wrote in his ruling. But "all things considered," he said, the case has "proceeded remarkably smoothly and swiftly to date."

Mr. Cooper didn't immediately respond to a request for comment.

Judge Furman also denied a request by Mr. Cooper to unwind a $275 million settlement reached last year between GM and more than 1,300 of Mr. Hilliard's clients. Judge Furman called accusations that the settlement was handled unfairly "meritless."

Mr. Hilliard and Ms. Cabraser welcomed the ruling and said they will continue their commitment to representing clients with claims against GM. A spokesman for GM had no immediate comment.

The dismissed trial is one of six so-called bellwethers scheduled to take place this year meant to help GM and plaintiffs negotiate broader settlements. GM has so far reached ignition-switch settlements with consumers, shareholders and the U.S. Justice Department totaling more than $2 billion. The company in early 2014 recalled roughly 2.6 million vehicles equipped with a switch that can slip out of the run position, disabling safety features including air bags.

Another 20 trials over the switches are scheduled to take place in state court, according to Wednesday's ruling, including one that Mr. Cooper is working on. Focusing on the failed first trial, Judge Furman said, "is to miss the forest for a single tree."

Mike Spector contributed to this article.

Write to Sara Randazzo at [e-mail]

(END) Dow Jones Newswires

February 10, 2016 12:34 ET (17:34 GMT)

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