As reported by Law360 (subscription), the trust for General Motors’ unsecured creditors has submitted a new proposal to a New York bankruptcy court containing a revised proposed settlement of the company’s legacy ignition switch lawsuits, under which consumers who claim GM sold them defective vehicles seek class certification for their claims.
The new settlement proposal comes after years of ongoing litigation and dispute over allegations that the automaker knowingly sold faulty vehicles before, during, and after its historic 2009 bankruptcy.
Past court documents revealed that General Motors could have fixed its defective ignition switches in 2002 for as little as 57 cents per vehicle. If approved, the new deal could cost New GM $1 billion in stock and would require the trust to accept additional claims whose legitimacy it has been fighting for years.
With the additional claims, the total amount of unsecured claims against Old GM would come out to more than $35 billion. This would force New GM, under a Chapter 11 creditor payout, to sell 10 million shares of common stock to pay the claimants.
Legal Rights of Those Injured by Defective Cars
Automakers have a legal duty to produce cars that are safe, and promptly correct any known safety defects. Damages in personal injury lawsuits against auto manufacturers for selling defective vehicles with safety flaws include damages for:
- Past and future physical pain and suffering, mental anguish and physical impairment;
- Past and future medical, incidental and hospital expenses;
- Past and future loss of earnings and earning capacity; and
- Punitive damages in cases of egregious misconduct.
If the driver or occupant was killed, surviving families members may file a wrongful death lawsuit.
Contact Lieff Cabraser
Lieff Cabraser has successfully represented persons across the United States injured in car accidents due to safety defects in the vehicle.
If you or a family member have been injured in an accident linked to a faulty GM ignition key or switch, please contact Lieff Cabraser for a prompt and confidential evaluation of your case. You can also call us toll-free at 1 800 541-7358 and ask to speak with auto accident attorney Fabrice N. Vincent.