GM General Motors Company

General Motors Co. and plaintiffs' lawyers suing the auto maker over a defective ignition switch are putting up a rare united front to battle accusations that threaten to derail long-running litigation consolidated in a New York federal court.

In court filings late Monday, GM called allegations that the company colluded to help a plaintiffs' lawyer maximize fees "wild and frivolous." A trio of plaintiffs' lawyers leading litigation, meanwhile, called allegations made to support their ouster "sweeping and unsupported."

The dueling responses came after a Georgia lawyer who previously helped uncover GM's ignition-switch defect called for a federal judge to dismiss the plaintiffs' lawyers leading so-called multidistrict litigation against the car maker after evidence emerged that one of the consumers they represented committed fraud.

The lawyer, Lance Cooper, cited an "embarrassing retreat" for the plaintiffs' lawyers in being forced to drop a personal-injury case that kicked off the first of six trials aimed at setting patterns for remaining legal settlements with GM. He faulted the case as weak and alleged plaintiffs' lawyers were colluding with GM to limit the car maker's financial exposure in the litigation.

Mr. Cooper is also looking to unravel a $275 million settlement reached between GM and more than 1,300 consumers represented by one of the three lead plaintiffs' lawyers, Bob Hilliard, saying it was handled unfairly.

GM said in its filing the settlement "should not be held hostage" by Mr. Cooper, whom the company described as disgruntled. ​​The plaintiffs' lawyers said Mr. Cooper failed to uncover any errors that support dismantling the fund. ​

GM said it wouldn't address other allegations Mr. Cooper made against the lead plaintiff's lawyers.

The dispute could affect the money that eventually flows to consumers who haven't yet settled with GM on account of the defective switch, as well as the pecking order for lucrative attorneys' fees.

The legal wrangling also threatens to delay GM's attempts to move beyond a significant safety crisis that led to the Detroit auto maker settling criminal charges that it misled regulators and consumers. GM has so far reached ignition-switch settlements with other consumers, shareholders and the U.S. Justice Department totaling more than $2 billion.

GM in early 2014 recalled roughly 2.6 million older Chevrolet Cobalts and other small cars equipped with a switch that can slip out of the run position, disabling safety features including air bags. The defect is linked to more than 120 deaths.

Mr. Cooper's allegations came after Mr. Hilliard and other plaintiffs' lawyers in January were forced to drop the first of six so-called bellwether trials aimed at setting patterns for settlements with consumers bringing claims for economic losses, personal injury or wrongful death. The case involved Mr. Hilliard's client, an Oklahoma postal worker who alleged his air bag failed to deploy in a car crash because of the defective switch.

The trial ended prematurely when GM uncovered evidence that Mr. Hilliard's client had doctored a check stub when attempting to purchase a home. Mr. Cooper said the case shouldn't have been brought and further alleged that the plaintiffs' lawyers were shutting out other lawyers representing consumers and making grabs for fees.

GM said Mr. Cooper is now improperly exploiting the setback in the trial to "gin up claims of secrecy and concealment" that have no basis. The plaintiffs' lawyers said Mr. Hilliard selected the case after "careful culling and deliberation."

They added the trial was an appropriate bellwether case because of circumstances surrounding the car crash involved, the plaintiff's injuries and the promise of possible punitive damages. Despite having to drop the case, work that went into the trial can guide future proceedings that can benefit plaintiffs', they said.

Mr. Cooper sat on a committee of attorneys helping the GM plaintiffs' lawyers trio with the case but resigned from the role in April, according to court documents.

Mr. Hilliard is one of three attorneys, including Seattle lawyer Steven Berman and San Francisco-based Elizabeth Cabraser, appointed by a judge in August 2014 to steer the consolidated GM litigation in New York.

In San Francisco, Mr. Berman and Ms. Cabraser were both recently named to play key roles in litigation against Volkswagen AG over its diesel emissions scandal.

Large cases often lead to closed-door grappling among plaintiffs' lawyers over issues like fee sharing and control, according to complex litigation expert Alexandra Lahav, but it is unusual to see allegations like these come to light publicly. "This is something new," said Ms. Lahav, a professor at University of Connecticut School of Law.

Write to Mike Spector at mike.spector@wsj.com

(END) Dow Jones Newswires

February 02, 2016 09:35 ET (14:35 GMT)

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