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Posts Tagged ‘GM faulty ignition switches’

GM Ignition Litigation Marches On

Company facing $1 billion trial this week.

by on Dec.18, 2017

GM is facing more litigation related to its faulty ignition switches.

General Motors Co. is facing another expensive day in court on the massive and complex litigation related to the faulty ignition switches found in millions of cars built by the company during the first decade of the 21st century.

The potential liability from a trial slated to start this week tops $1 billion in stock to address claims related to the malfunctioning ignition switches, according to the Wall Street Journal.

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The report noted that the trial, set to start Monday in a Manhattan federal bankruptcy court, centers on whether General Motors can block a deal reached in August between ignition-switch plaintiffs and a trust representing creditors of so-called Old GM, the assets the automaker left behind in 2009 as part of its $50 billion government rescue and restructuring.  (more…)

GM Gambles on Reversal of Appeals Court Ruling

Company exposed to new set of liabilities.

by on Aug.15, 2016

GM is appealing the ruling of a three judge panel on the court of appeals that exposes it to millions of dollars in new liabilities.

Lawyers for General Motors are gambling they can persuade the full panel of judges from the U.S. Second Circuit Court of Appeals to reverse an opinion by one the court’s three judge panels in the ongoing battle surrounding its faulty ignition switches.

The panel recently ruled against the company, leaving it potentially facing millions in dollars in additional liabilities in the lengthy legal fight over the defective ignition switch in GM vehicles linked to more than 120 deaths.

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The original ruling, which was made public in July, represented a significant setback for GM in the long-running litigation since it reversed part of a bankruptcy court decision that protected the automaker from some lawsuits over the defect that prompted the recall of 2.6 million vehicles in 2014. (more…)

GM Settling Ignition Switch Class-Action Lawsuit

Pensioners lead effort toward $300 million plan.

by on Nov.17, 2015

General Motors is moving toward a $300 million settlement of a class-action lawsuit about its faulty ignition switches.

General Motors is moving towards a $300 million deal that will end a class-action lawsuit that charges the automaker with concealing the deadly ignition-switch defects, which drove down the value of GM stock.

The New York State Teachers’ Retirement System filed papers in the federal court for the Eastern District of Michigan asking for approval of the $300 million deal, which will end a consolidated class action claiming General Motors Co.’s stock price was inflated during a period when the company concealed ignition-switch defects that the plaintiffs say killed more than 124 motorists.

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The $108.2 billion pension fund was approved as lead plaintiff in a class-action lawsuit last year in which the plaintiffs claimed GM committed fraud by failing to disclose the scope of the problem of faulty ignition switches. Costs of the ignition switch scandal has now topped more than $5 billion and continue to grow. (more…)

GM Ignition Switch Deaths Grows by Four

A total of 104 now declared eligible for death benefits.

by on May.19, 2015

Four more families were declared eligible for death benefits from GM's victims benefits fund.

Four more people were added this week to the list of those killed as while driving in General Motors vehicles that crashed as a result of faulty ignition switches that necessitated the recall of nearly 2.6 million cars last year.

That brings the total number to 104, according to the latest update from Kenneth Feinberg, the administrator the $550 million victims fund established by the automaker.

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Feinberg and his team still have to process another 26 applications for death benefits, the report notes. Additionally, there are 469 applications for injury benefits, including 52 applications for Category One benefits, which cover people who suffered lost limbs, brain damage or pervasive burns in crashes. (more…)

GM Bankruptcy Judge May Rescind Liability Shield

Removing protection allows lawsuits to proceed.

by on Feb.18, 2015

GM CEO Mary Barra may be facing a tougher year in 2015 if a federal judge rescinds the company's bankruptcy shield.

After securing an important court victory in January, General Motors is on the precipice of a potentially devastating loss as the federal bankruptcy judge that approved the maker’s plan is rethinking the company’s liability shield.

U.S. Bankruptcy Judge Robert Gerber heard arguments about whether or not GM can keep the shield, which blocks victims of the company’s faulty ignition switches from suing the automaker, which exited bankruptcy in 2009.

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Essentially, since the defective parts were on vehicles manufactured prior the bankruptcy, the “new” GM can claim it is not liable for those vehicles. However, the shield can be revoked in some cases, including if it can be proven that GM executives knew about the problem when it was putting together it’s plans in 2009. (more…)

Feinberg Ups GM Ignition Death Toll to 21

Administrator approves two more claims for death benefits.

by on Sep.22, 2014

Kenneth Feinberg approved two more claims for death benefits from the GM victims compensation fund.

For the second time in less than a month, the number of deaths connected to faulty ignition switches in General Motors’ small cars has been revised upward. It now stands at 21.

Kenneth Feinberg, the independent administrator of the victims compensation fund established by the automaker, approved two more claims for death benefits moving the number from 19. Less than two weeks ago, he approved six claims to change the number from 13 to 19.

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Additionally, he substantiated four claims for serious injuries, which under the definitions established includes amputations, burns, spinal cord or brain damage. Twelve of 467 claims for hospitalization with 48 hours of an accident were also deemed eligible for compensation. (more…)

GM Needs to Pick up Pace on Ignition Repair Kits

House subcommittee recalls CEO Barra for next hearing.

by on Jun.16, 2014

GM CEO Mary Barra will be testifying again on Wednesday before the House Oversight and Investigations subcommittee.

General Motors is going to have to step on the gas in order to meet its goal of having 2.6 million ignition switch repair kits built and shipped by the end of October, according to a U.S. House committee memo distributed today.

As of June 11, GM has built and shipped 396,253 kits globally and 154,731 vehicles have been repaired: most of those in the United States. In the U.S., 339,672 kits have been shipped and 129,583 vehicles repaired, the committee reported in the memo. It accounts for just about 5% of 2.6 million vehicles that are slated for the repair.

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The automaker has met with the National Highway Traffic Safety Administration to discuss how it plans to meet its October deadline. GM officials have noted that they are in the process of working Delphi Corp., the supplier of the kits, to add a third production line to reach the goal. (more…)

‘Switchgate’: What Did GM Know and When Did GM Know It?

Revised timeline raises new concerns about long delay in launching GM recall.

by on Mar.13, 2014

There are new alegations that GM knew about the problem with its ignition switches as early as 2001.

This story has been revised to reflect General Motors’ official response to the letter sent to Mary Barra by safety advocates Clarence Ditlow and Joan Claybrook.

As new evidence continued to pour out about a break-in of Democrat campaign headquarters that came to be known as “Watergate,” one of the critical questions posed about then-President Richard Nixon was what did he know and when did he know it. Four decades later, a similar question is being asked about General Motors in what some are now calling “Switchgate.”

The “-gate” reference has become a tired cliché, applied in far too many instances of crisis and intrigue. But the fundamental concern is much the same as with the Watergate scandal: It now appears that General Motors may have had the first signs of trouble as early as 2001 with ignition switches it used in a wide range of its compact models now linked to a dozen deaths, 31 crashes and hundreds of complaint reports.

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That dates back to well before the first of the vehicles were put into production – and 13 years before GM announced it was recalling 1.6 million Chevrolet Cobalts, Saturn Ions and other models to make repairs to switches that could inadvertently turn from the On position to Off or ACC, in the process stalling out and leaving their airbags inoperable. (more…)

Bankruptcy May Save GM Once Again

Filing terms prevent pre-2009 product liability lawsuits.

by on Mar.10, 2014

The 2004 Saturn Ion Coupe is on the list of vehicles being recalled by GM, but the automaker may not be accountable for the vehicles.

Bankruptcy saved General Motors and it may save the company again, at least from a significant liability issue and the millions of dollars that might go with it.

When GM went through bankruptcy it created a “new” GM leaving the debt and many of the liabilities with the “old” GM. This separation extends to product liability, according to an Automotive News report.

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Under the terms of its restructuring, GM’s product liability extends only to accidents that happened after the “new” company exited bankruptcy in July 2009, Automotive News reported. Plaintiffs injured before that time would have to take “old” GM to Bankruptcy Court. The chances of getting compensation in that setting are very low. (more…)

GM’s Barra Taking Charge of Ignition Recall Response

CEO ensuring maker goes above and beyond.

by on Mar.04, 2014

GM CEO Mary Barra is personally overseeing the company's response to the faulty ignition switch recall and the investigation by NHTSA.

General Motors’ CEO Mary Barra is showing that she means what she says after forming – and heading up – a select group of executives to oversee the company’s recall of 1.6 million vehicles due to faulty ignition switches.

Barra, who recently said GM would be judged on how it responded to the recall rather than the actual problem with the vehicles, is personally heading up the group.

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The recall affected cars from model years 2003 through 2007, including the Chevrolet Cobalt, Pontiac G5, Saturn Ion, Chevrolet HHR, Pontiac Solstice and Saturn Sky. (more…)