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Posts Tagged ‘GM lawsuits’

GM Escapes $1B Stock Handover in Lawuit Settlement

Automaker pays trust's legal fees to fight lawsuits.

by on Aug.17, 2017

General Motors avoided giving up $1 billion in stock by paying its bankruptcy trust to fight lawsuits related to its faulty ignition switches.

General Motors escaped handing over $1 billion in stock by reaching an agreement with the automaker’s bankruptcy trust to litigate hundreds of personal injury cases and a class-action lawsuit related to its faulty ignition switches.

Last week, it appeared that the trust and plaintiffs had reached a $15 million settlement that would have had the trust accepting $10 billion in previously disputed claims, which would have pushed total approved claims in the case past $35 billion.

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The company cried foul in a letter to U.S. Bankruptcy Court in Manhattan, claiming the two sides had engaged in secret talks. (more…)

GM Settles Final Two Bellwether Cases

Automaker still has more ignition-related problems to solve.

by on Sep.06, 2016

GM settled the final two of six bellwether cases designed to set the pattern for future settlements related to the maker's faulty ignition switches.

General Motors Co. agreed to settlements in the final two ignition-switch cases slated for trial in a New York federal court this year. Terms of the settlements were not disclosed.

The settlements move GM closer to putting to rest a significant portion the claims that followed the use of a defective ignition switch that GM installed in more than 2.6 million vehicles resulting in 84 separate recalls.

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The cases were the final two among a half dozen “bellwether” trials aimed at setting patterns for a larger group of personal injury and wrongful death suits. GM recalled the vehicles with faulty ignition switches in early 2014 after it was proven that jostling the switches could turn off engines and safety features including power steering, power brakes and airbags, creating a substantial hazard for drivers and passengers. (more…)

Appeals Court Deals GM Major Setback in Ignition Case

"New" GM back on hook for financial harm done to owners.

by on Jul.14, 2016

After faring well in a series of bellwether cases, General Motors suffered a serious legal setback related to its faulty ignitions.

General Motors Co. just suffered a major setback in the long-running litigation over the defective ignition switch in GM vehicles linked to more than 120 deaths and hundreds more injuries.

A federal appeals court reversed part of a bankruptcy court ruling that protected the automaker from some lawsuits over the defect that prompted the recall of 2.6 million vehicles in 2014.

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The court found that “New” GM is not immune to lawsuits from owners claiming they have been financially harmed due to the loss in value of their recalled vehicles. (more…)

GM’s Fourth Bellwether Case Dismissed

Automaker comes out ahead in three of four cases.

by on Apr.11, 2016

GM won the fourth of six bellwether cases designed to set the pattern for future settlements related to the maker's faulty ignition switches.

In quick succession, General Motors has avoided major damage in four of six injury lawsuits that were expected to dominate the calendar in 2016.

GM confirmed that plaintiffs’ lawyers suing over a faulty ignition switch design linked to nearly 400 injuries and deAdd an Imageaths dismissed what was scheduled to be the fourth in a series of six test trials over the defect, according to Reuters.

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The dismissal followed a settlement in what was to be the third lawsuit to go to trial and followed a win for the automaker a week ago in the first of the so-called bellwether trials to reach a verdict. Terms of the settlement in what was to be the third bellwether case were not disclosed. (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’s $600 Mil Victims Fund Completes Claims

Feinberg team finishes processing of benefit applications.

by on Jul.13, 2015

Kenneth Feinberg, administrator fo GM's victims compensation fund, said the team has processed all of the benefit claims.

The team administering the compensation fund for victims of General Motors faulty ignition switches, led by Kenneth Feinberg, has processed the last of the more than 4,000 claims filed seeking monetary damages.

The fund began accepting claims last August and closed the application process at the end of January, handled 4,342 claims, approving 124 death benefits and 266 injury payouts. The minimum payout for death benefits was $1 million.

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GM established the fund with $600 million, but through March 31 approximately $200 million has been paid. Ultimately, more than 90% of the claims made were denied by Feinberg and his team were denied. There is no appeal process as claimants gave up the right to any form of appeal. (more…)

Deaths Due to GM’s Faulty Ignitions Hits 100

Still 37 more death benefit claims to review.

by on May.11, 2015

GM said it has repaired more than 70% of the vehicles with its faulty ignition switch.

The number of deaths attributable to the faulty ignition switches in the 2.6 million vehicles recalled by General Motors has hit 100.

According to the latest update from Kenneth Feinberg, the administrator the $550 million victims fund established by the automaker, the number of death claims rose this week by three. There are 37 applications still to be considered after 227 have been denied. The automaker said it has repaired between 70 and 75% of the vehicles.

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In addition to the claims for death benefits, Feinberg’s staff approved 12 claims for people who suffered lost limbs, brain damage or pervasive burns in crashes, which are described as Category One. The claims for another 172 people who suffered less severe injuries that required hospitalization or outpatient treatment have also been approved, also known as Category Two injuries. (more…)

GM Ignition Switch Death Toll Rises to 97 Victims

Feinberg team continues processes claims.

by on May.04, 2015

Kenneth Feinberg, administrator fo GM's victims compensation fund, approved another round of benefits for victims.

General Motors initially claimed that 13 people were killed as a result of the faulty ignition switches that forced the recall of nearly 2.6 million vehicles last year: that number is now at least 97 people.

Kenneth Feinberg, the administrator of the $600 million victims compensation fund established by GM, released the latest results of his team’s efforts to process claims filed by victims and their families.

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The number of deaths has been slowly rising since the automaker established the fund and Feinberg and his team began sifting through the claims. In total, 474 claims were submitted for death benefits, and 97 were deemed eligible, 212 ineligible and 105 were “deficient,” which means it didn’t have enough documentation to be processed. (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…)

GM Captures Key Win in Recall Case

Judge rules internal investigation notes off limits.

by on Jan.16, 2015

GM secured a major court victory when a federal judge denied plaintiffs lawyers access to the notes of its internal investigation.

General Motors scored a major court victory as a New York federal judge ruled that plaintiffs suing the automaker for compensation due to faulty ignition switch couldn’t access critical documents from the law firm handling GM’s internal investigation.

Prior to the ruling, GM denied plaintiffs lawyers access to the notes taken by Jenner & Block LLP during the automaker’s internal investigation into its ignition switch defect.

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U.S. District Judge Jesse Furman’s decision concluded that plaintiffs could not view the interview materials involved in Jenner & Block LLP’s internal investigation of the automaker. Those notes were the basis of what is now called the Valukas Report. Anton Valukas, a former federal prosecutor, oversaw the investigation. (more…)