Judge: GM Not to be Blamed for Saab Bankruptcy

courtroom

An U.S. federal judge dismissed Spyker NV’s lawsuit against General Motors (NYSE:GM) Monday, contending that the US automaker had the right to approve or disapprove Saab’s potential transaction with Zheijiang Yougman Lotus Automobile based on the conditions it outlined to Spyker when it sold Saab.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

According to Reuters, the Dutch sports car maker filed a $3 billion lawsuit in August 2012 against GM over allegations that the company was trying to unfairly impede a deal between Saab and Youngman in an attempt to bankrupt the Swedish automaker.

But at the hearing in Detroit on Monday, U.S. District Court Judge Gershwin Drain asserted that GM had the right to stop the change of ownership based on the terms Spyker agreed to when it purchased Saab. Believing that GM’s opposition to Saab’s deal was not intentionally malicious, he made the decision to throw out the lawsuit.