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GM, Plaintiffs Spar Over Where to Consolidate Recall Claims

General Motors Co. is asking that a New York City court be selected to consolidate hundreds of lawsuits claiming economic losses caused by the carmaker's recall of 2.6 million cars with defective ignition switches.
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General Motors Co. is asking that a New York City court be selected to consolidate hundreds of lawsuits claiming economic losses caused by the carmaker's recall of 2.6 million cars with defective ignition switches.

GM wants the cases combined in a federal court located near the New York bankruptcy judge who handled the company's restructuring in 2009. "New" GM contends is shielded from liabilities incurred by the pre-bankruptcy company.

Plaintiffs' attorneys contend that proximity to the bankruptcy court isn't relevant. They suggest the cases which don't include death or bodily injury claims be consolidated in California, Texas or Michigan.

A seven-judge U.S. Judicial Panel on Multidistrict Litigation in Chicago may decide the location question this week.

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