(Bloomberg) -- General Motors Co. won a partial victory in itssecond trial over faulty ignitionswitches as a judge threw out a key fraud claimagainst the automaker, a company spokesman said, boosting thecompany’s outlook for resolving hundreds of similar cases on betterterms.

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A federal judge in Manhattan on Monday dismissed the fraudclaim, granting a GM motion that driver Dionne Spain hadn’tpresented enough evidence to show that the company made false ormisleading statements about the defect in its cars. U.S. DistrictJudge Jesse Furman didn’t issue a written opinion. The rulingfollows Furman’s earlier rejection of other claims, including ademand for punitive damages.

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Jurors in Manhattan federal court will still weigh whetherSpain’s 2007 Saturn Sky had a defect and whether that defect led toa crash on a New Orleans bridge in 2014. GM rested its defenseMonday and the case will go to the jury Tuesday.

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Fraudulent misrpresentation claim dismissed


“Dismissing the fraudulent-misrepresentation claim was the rightdecision because there was not sufficient evidence presented attrial to even send it to the jury to decide,” GM spokesman Jim Cainsaid in an e-mailed statement.

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An e-mail to lawyers for Spain wasn’t immediately returned.

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GM, which recalled millions of vehicles over the flaw in 2014,admitted to using defective ignition switches for years and tohiding the fact from customers and regulators. But the company ischallenging suits that it says wrongfully blame the flaw forcrashes, injuries and deaths.

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Criminal probe


The Detroit-based carmaker has already paid out more than $2billion to resolve legal issues stemming from the scandal,including $900 million to end a criminal probe by the U.S.government; $575 million to settle a shareholder suit and more than1,380 civil cases by victims; and $595 million through a victims’compensation fund outside of court.

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The first case, selected by the plaintiffs, ended inembarrassment for their lawyers, who are among the best-knownattorneys in the industry. That trial ended abruptly midstreamwhen GM revealed evidence that the plaintiffs, an Oklahoma couple,had lied under oath and wrongfully blamed GM for the family’seviction from their “dream house.”

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Plaintiffs in all the cases allege GM endangered drivers andpassengers by delaying the recall of defective vehicles. Due to aweakness in the design of ignitions switches, jostled keys or abump from a knee could shut-off the engine, disable steering,brakes and airbags, and leave occupants helpless as vehiclescareened out of control.

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The case is In re General Motors LLC Ignition SwitchLitigation, 14-MD-2543, U.S. District Court, Southern Districtof New York (Manhattan)

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