A federal judge in Manhattan has rejected a challenge to the transfer of assets from the bankrupt General Motors Corp. to a new government-supported entity “free and clear” of product liability claims.

According to attorney Steve Jakubowski of the Coleman Law Firm in Chicago, the deal wiped out roughly $250 million in claims, including those of his client Callan Campbell, who was partially paralyzed at age 18 when a GMC Jimmy vehicle in which she was riding rolled over.