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Posts Tagged ‘kenneth feinberg’

Takata to Plead Guilty, Set up Victims’ Fund

Three executives face criminal trial but remain out of reach.

by on Feb.27, 2017

At least 16 people are known to have been killed due to faulty Takata airbags.

Embattled Japanese auto supplier Takata Corp. is expected to formally enter a guilty plea in Detroit federal court on Monday, fulfilling the requirements of a deal with the U.S. Justice Department stemming from the cover-up of a deadly airbag defect.

The settlement will see Takata pay $1 billion to settle the case, including a $25 million fine, while also setting up a $125 million compensation fund for victims and family members. So far, at least 16 people are known to have been killed by the company’s malfunctioning airbags, with over 100 injured.

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The government also indicted three Takata executives for allegedly falsifying test reports in an effort to cover up the airbag problem. Dozens of different automotive brands have been impacted by the defect which has led to the recall of more than 42 million vehicles in the U.S. alone.

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As GM Closes Out Ignition Investigation, CEO Barra Says Maker Learned its Lesson

On 3-year probation, GM's problems aren't yet over.

by on Sep.17, 2015

GM CEO Mary Barra addresses a company town hall to discuss the ignition switch settlement.

The U.S. Department has concluded a year-longer investigation into General Motors’ handling of a deadly ignition switch defect with a settlement that requires the automaker to pay a $900 million fine. The maker separately negotiated $575 million settlement to conclude various civil suits related to the ignition switch issue now blamed for at least 124 deaths.

The settlement was significantly less than many had expected. And federal investigators did not bring charges against anyone connected with the defect despite GM’s acknowledgement that it waited a decade to deal with the problem. The Justice Dept. had extracted a $1.2 billion fine from Toyota Motor Co. last year to settle charges it had delayed action on defects related to unintended acceleration.

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For her part, General Motors CEO Mary Barra told employees at a town hall meeting at the company’s Vehicle Engineering Center in Warren, Michigan that GM had “let (its) customers down.

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GM Reportedly Set to Settle Justice Dept. Case Over Faulty Ignition Switches

Penalty expected to be in “hundreds of millions of dollars.”

by on Sep.17, 2015

A replacement for the faulty GM ignition switches.

General Motors may take a step closer to wrapping up one of the most troubling incidents in its long history, according to news reports, agreeing to settle a Justice Department criminal investigation into it botched handling of a deadly ignition switch defect.

If preliminary reports prove accurate, GM would pay a penalty in the “hundreds of millions of dollars,” and perhaps as much as $900 million, according to sources close to the investigation quoted by NBC News and other media outlets. That would be substantially less than the $1.2 billion paid by Toyota Motor Co. in March 2014 to settle an investigation into its own safety-related problems.

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The GM settlement also is expected to include a wire fraud charge, though there are no indications any specific individuals will be subject to criminal prosecution, a possibility raised early in the Justice Dept. investigation – and by GM’s own move last year to fire 15 company employees due to their role in delaying a recall of 2.5 million vehicles equipped with faulty switches.

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GM Death Toll at 107 as Feds Find Criminal Wrongdoing

Hefty fines could follow

by on May.26, 2015

GM CEO Mary Barra testified before congressional subcommittees four times due to GM's recall of 2.6 million vehicles last year.

The official death toll from faulty General Motors ignition switches has jumped again, to 107. At the same time, federal prosecutors have reportedly decided there was criminal wrongdoing in the way the maker handled the defect, taking more than a decade to order a recall.

Whether any individual will be prosecuted for the flawed handling of the ignition switch problem is uncertain, but hefty fines appear likely to follow, with the New York Times reporting that the ongoing investigation could be wrapped up by summer.

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Those fines could run well in excess of the money GM already has laid out to settle claims filed with a victims’ compensation fund. Last year, GM set aside $400 million to cover potential claims. By the time of the filing deadline on January 31, administrator Kenneth Feinberg reported receiving 4,342 separate claims.

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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 Engaged in Cover Up of Ignition Switch Problems

Lawyers claim new documents show effort to hide problem.

by on Mar.17, 2015

29-year-old Brooke Melton was killed in a crash involving her 2005 Chevrolet Cobalt.

The law firms handling one of the high-profile lawsuits against General Motors due to its faulty ignition switch allege the automaker actively engaged in a cover up problems that led to the deaths of more than 65 people.

During a news conference on Monday, attorneys for the family of Brooke Melton, who died in 2010 as a result of an accident tied to the faulty switch, said documents produced by GM and the supplier of the switches, Delphi Automotive, under seal, show that high-level executives knew there was a problem with the switches, but declined to do anything about it.

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GM declined to comment on the press conference. (more…)

GM Gets Deadline Flurry of Compensation Claims

Fund receives 455 total filings for death benefits.

by on Feb.03, 2015

GM saw 1,100 new filings for benefits from its victims compensation fund just before the Jan. 31 deadline.

The Jan. 31 deadline for claims to General Motors’ victim compensation fund spurred a flurry of 1,100 new filings.

The rush brought the total number of filings to 4,180, including 455 death benefits: an increase from 338 the week prior. Claims for the most severe injuries rose to 278, up from 224 a week earlier, and filings for less severe injuries jumped to 3,447 from 2,508 a week earlier.

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The fund is administered by Kenneth Feinberg, an attorney whose firm oversaw similar funds related to the BP oil spill and other issues, who said in a radio interview yesterday that he expects the total number of filings to rise a bit more because any claims post marked for Jan. 31 will be accepted. (more…)

GM Ignition Switch Related Deaths Rises to 42

Feinberg approves four more fatalities for settlements.

by on Dec.17, 2014

Kenneth Feinberg has approved 42 claims for death benefits from the GM victims compensation fund.

While General Motors’ executives continue to speak confidently of having put the ignition switch recall in the rear-view mirror, casualty claims related to the defective vehicles continue to climb.

Four more deaths have been linked to the ignition defect, raising the total to 42 fatalities, according to a report Monday from the attorney running the compensation fund for victims of crashes attributed to the faulty ignition.

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GM has received a total of 2,326 claims — 251 for deaths, 156 for catastrophic injuries and 1,919 for less-serious injuries that required hospitalization — according to the latest report from Kenneth Feinberg, the New York super lawyer, who was selected by GM to administer the claims settlements. (more…)

Deadline Extended for GM Ignition Recall Claims

Feinberg wants to ensure everyone eligible has been contacted.

by on Nov.17, 2014

Kenneth Feinberg, administrator fo GM's victims compensation fund, extended the deadline for filing claims to Jan. 31, 2015.

The deadline to file claims for benefits from General Motors victims fund was extended by one month to Jan. 31, 2015. The deadline was extended to ensure that anyone eligible to file a claim had been contacted and the time necessary to compile the information needed to file.

“I believe that the many efforts to reach all possible GM automobile owners, former owners and others who might have been adversely impacted by a defective ignition switch have been both comprehensive and effective,” said Kenneth Feinberg, the administrator of the fund, in a statement.

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“There will always be some individuals who do not receive formal notice and are generally unaware of available compensation. But such individuals appear to be very few in number.” (more…)