A proposed class settlement of economic loss claims by persons who owned or leased certain GM vehicles that were recalled in 2014 has been submitted for approval to the federal district court. The recalls involved the ignition system, key rotation, electronic power steering and/or side airbag wiring. Plaintiffs claim that consumers overpaid when they bought or leased these vehicles. General Motors LLC (“New GM”), the Motors Liquidation Company GUC Trust (“the GUC Trust”), and the Motors Liquidation Company Avoidance Action Trust (“the AAT”) deny these allegations. Plaintiffs, the GUC Trust, New GM and the AAT have agreed to a settlement to avoid the risk and cost of further litigation. [Read more…]
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. [Read more…]
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. [Read more…]
As reported by Law360 (subscription), General Motors had the opportunity to fix its defective ignition switches in 2002 — for about $2,000. That’s not a misprint; for about two thousand dollars, the company could have obtained a “stronger ignition switch than the one that ended up costing lives, jobs and a corporate reputation.” But GM decided against it. [Read more…]
As reported by Law360, a former automotive industry engineer testified in a Tuesday bellwether trial that General Motors engineers were forbidden by company policy from utilizing certain terms like “problem” or “bad” (and even terms like “rolling sarcophagus,” which even needing a policy against speaks volumes about issues with the switches themselves) when describing the GM ignition switches. This consequently prevented these engineers from warning officials about the failing ignition switches and product defect.
U.S. District Judge Jesse Furman in Manhattan stated that the arguments General Motors Co. presented for dismissal of the automaker’s faulty ignition switch trial “fail as a matter of law.” As a result of Furman’s refusal to dismiss plaintiffs’ allegations, the first case against GM will proceed to trial, set to begin January 11. [Read more…]
In an article examining the landscape of 2016 automotive product liability defect cases,Law360 spoke with Lieff Cabraser partner Elizabeth Cabraser about the General Motors deadly ignition switch defect cases. The defect, which can cause vehicles to lose power and thus prevent airbags from deploying, has allegedly caused hundreds of deaths and injuries and has affected millions of GM autos. [Read more…]
Attorneys Steve Berman, Bob Hilliard and Elizabeth Cabraser, co-lead counsel in the high-profile, class-action lawsuit against General Motors Co (NYSE: GM) today responded to the $900 million fines levied against the automaker and GM’s admission to concealing a defect that it was required by law to report under the Motor Vehicle Safety Act.
Consumers represented by co-lead counsel Lieff Cabraser and Hagens Berman today filed an expanded class-action complaint against General Motors (NYSE:GM), bringing RICO (Racketeer Influenced and Corrupt Organizations) claims against New GM based on new information from the lawsuit’s discovery phase that indicates New GM committed mail and wire fraud in connection with the ignition switch defect that causes cars to stall unexpectedly and disables the cars’ airbags.