(Bloomberg) -- The U.S. SupremeCourt cleared the way for potentially billions of dollars inlegal claims against General Motors Co. over a deadly ignition-switch defect, turning away thecompany’s appeal in a clash connected to its 2009 bankruptcysale.

The justices, without comment, left intact a federal appealscourt ruling that said the accord, which turned “Old GM” into “NewGM,” didn’t block lawsuits over accidents that happened before thesale or claims that the flaw caused vehicles to losevalue.

Related: GM must defend igniton-switch suits affecting usedcars

Ignition flaw leaked to 124 deaths

The ignition flaw has been linked to at least 124 deaths and led to2.59 million vehicle recalls. Plaintiffs’ lawyers have estimatedthat claims against the company may total as much as $10billion.

GM fell by 3 cents, or 0.1 percent, to $33.72 at 11:39 a.m. inNew York.

The company pointed to a federal bankruptcy law provisionthat lets a purchaser acquire a debtor’s assets “free and clear” ofany liability.

The appeals court said the provision doesn’t shield GM, becausethe company knew about the flaw before the bankruptcy and shouldhave directly notified each affected customer. Barring the suitswould violate the Constitution’s due process clause, the courtsaid.

“New GM essentially asks that we reward debtors who concealclaims against potential creditors,” the appeals court said.

The July 2016 ruling also revived suits by post-sale car buyerswho say they wouldn’t have made the purchase had they known aboutthe switch flaw.

‘Undermine’ bankruptcy

In its appeal, GM argued the ruling “will undermine a crucialaspect of one of the biggest and most important bankruptcies inhistory.”

GM spokesman Jim Cain said in an emailed statement that thecourt’s action Monday "doesn’t change the landscape much in termsof the GM litigation." Those who sued still must show they have theright to raise their claims and "still have to prove those claimshave merit," he said.

Related: GM CEO Barra tells jury company flubbed fatalignition flaw

Robert Hilliard, the lead lawyer for those who sued, said, "GMcan hide no more" from the claims. "These cases are factually someof the most tragic stories, and also some of the strongest in termsof clear liability of GM’s intentional misconduct. Each case willsoon be sent back to its local venue and each one will be tried toa verdict," he said in an emailed statement.

The plaintiffs say GM moved too slowly to recall vehicles inwhich jostled keys could trigger a shut-off and disable steering,brakes and air bags. While GM has said top executives didn’t knowthe ignition switch was a persistent problem, the company admittedin a Justice Department settlement that it knew about the defect by2005 and concealed it from regulators from 2012 to 2014.

The case is General Motors v. Elliott, 16-764.

Related: GM spared by bankruptcy judge from ignition-switchsuits

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