As reported by Law360 (subscription), General Motors has reached a $120 million settlement with drivers whose vehicles lost value as a result of accidents, deaths, and recalls stemming from the automakers faulty ignition switches.
GM will contribute up to $70 million into a common fund for the drivers, and the trust that was formed after the company’s historic 2009 bankruptcy will contribute up to $50 million. The settlement comes after years of ongoing litigation and dispute over allegations that the automaker knowingly sold faulty and dangerous vehicles before, during, and after its bankruptcy filing.
GM had previously paid over $1 billion to resolve a separate series of civil and criminal cases arising from the ignition-switch defect, including cases filed over the more than 100 deaths attributed to the design flaw. In 2014, GM issued a massive recall of the affected vehicles and in June of that year the economic loss litigation was consolidated into an MDL.
The new $120 million settlement is subject to approval from U.S. District Judge Jesse Furman of the Southern District of New York, who oversees both the MDL and the related bankruptcy court proceedings.
Contact a Vehicle Injury and Defect Lawyer at Lieff Cabraser
Automakers have a legal duty to produce cars that are safe, and promptly correct any known safety defects. The personal injury lawyers at Lieff Cabraser who focus on vehicle defect cases represent individuals and classes of owners and lessees harmed by unsafe and dangerous cars, SUVs, and trucks in lawsuits filed nationwide.
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 free, prompt and confidential evaluation of your case using the contact form on this page. You can also call us toll-free at 1 800 541-7358 and ask to speak with auto accident attorney Fabrice N. Vincent.