Boston, MA 10/13/2014 (wallstreetpr) – A former General Motors Company (NYSE:GM) employer has gone to court suing the giant automaker for apparently framing him in a rape case that he was acquainted of, after nearly 20 years in prison. Roger Dean Gillispie is getting unlikely help from hedge funds on his push having already sought permission from the U.S Bankruptcy Court in New York to pursue the matter.
The Old and New GM Dilemma
The court will have to decide whether Mr. Gillispie will sue the old company that went down in 2009 due to bankruptcy, or pursue the newly formed profitable General Motors Company (NYSE:GM). The current GM business model is shielded from any liabilities that might have arose before it was created after the bankruptcy debacle.
Hedge funds are already of the opinion that Gillispie should pursue the newly formed GM. The automaker spokesman has already stated that he does not believe that the new GM was responsible for the allegations levelled against the automaker by Mr. Gillispie. General Motors Company (NYSE:GM) is remaining firm that any case stemming from pre-2009 should not be levelled against the new GM. A court ruling in favor of the plaintiffs would mean that the new GM will be liable for tens of millions of dollars mostly based on some cars made before 2009.
Plaintiffs Suing GM
A number of Wall Street players pursuing the new General Motors Company (NYSE:GM) include Davidson Kempner Capital Management and Angelo Gordon & Co. Gillispie and the people suing the new GM argue that suing the deceased old GM will only translate to a loss as they might not get that much of what they are looking for. The old GM’s total worth in the new General Motors Company (NYSE:GM) is currently valued at 9.25 billion against $32 billion in claims.
Gillispie was vindicated of the rape charges in 2012 by federal and state courts that concluded he did not fit victim’s descriptions of the attacker.