Lieff Cabraser Civil Justice Blog
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Judge Gives Preliminary Approval to $120M Settlement Deal For Drivers in GM Ignition Switch Defect and Injury Litigation

As reported by Law360 (subscription), U.S. District Judge Jesse M. Furman has issued an order granting preliminary approval to a $120 million settlement deal reached by plaintiff drivers with General Motors over vehicles that lost value from faulty ignition switches, finding that the deal is fair and that he will “likely be able to grant final approval.” The immanent settlement was reached after a bankruptcy deal cleared away a large remaining obstacle.

Law360 notes that during a lengthy telephone hearing, Judge Furman took jurisdiction over both federal court and bankruptcy court economic loss claims.

In his order, he gave class members 90 days to submit a claim, and directed anyone who wants to opt out of the settlement to do so by mailing a “written, hand-signed request” by Oct. 19.

GM announced the proposed deal in late March 2020, stating it would contribute up to $70 million into a common fund for the drivers while a trust controlled by creditors formed after the company’s historic 2009 bankruptcy would contribute another $50 million.

The settlement comes after years of ongoing litigation and disputes over allegations that the automaker knowingly sold faulty and dangerous vehicles that have caused numerous accidents, deaths, and recalls, before, during, and after its bankruptcy filing.

Lieff Cabraser founding partner Elizabeth Cabraser, who represents plaintiffs in the litigation, told Law360 that the plaintiffs were ” very pleased that the district and bankruptcy courts will be granting the preliminary approval and other orders that are the first step in approval … of a class settlement designed to complete the remaining recalls, protect personal and public safety [and] compensate consumers.”

Learn more about the GM ignition defects and injuries lawsuits.

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.