Plaintiff Encouraged to Drop First GM Ignition-Switch Suit

A judge is encouraging lawyers to drop the first of a series of ignition switch defect lawsuits against General Motors Co. because of the plaintiff’s alleged fraud. The Wall Street Journal has the Daily Bankruptcy Review article here.

(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”)

Mattel Inc. won a bankruptcy auction for Nabi Tablet maker Fuhu Inc., DBR reports via WSJ.

Former American Apparel Inc. Chief Executive Dov Charney is fighting the retailer’s bankruptcy exit in court, DBR reports via WSJ.

A commentary from the Loan Syndications and Trading Association’s Elliot Ganz in Bankruptcy Beat argues against an earlier commentary on claims trading warping the bankruptcy system.

Credit Slips discusses a possible Chicago Public Schools bankruptcy.

Eagle Bulk Shipping Inc. won a temporary default waiver, giving it more time to avoid a possible bankruptcy filing, DBR reports via WSJ.

Write to Melanie Cohen at [email protected]. Follow her on Twitter at @MelanieLisa