The number of deaths attributable to General Motors’ faulty ignition switch in 2.6 million recalled vehicles has risen to 30. The count has steadily increased since Aug. 1, when the maker acknowledged 13 deaths.
The automaker established a victims’ fund, which is administered by Kenneth Feinberg, to compensate victims and their families for deaths and serious injuries. Feinberg began accepting claims on Aug. 1. In addition to the deaths, Feinberg approved the claims for 31 injuries.
Four of the injuries are “Category One,” which includes physical Injuries resulting in quadriplegia, paraplegia, double amputation, permanent brain damage or pervasive burns.
The remaining 27 are “Category Two,” which are injuries requiring hospitalization or outpatient medical treatment within 48 hours of the accident, according to the fund website.
Overall, 1,580 claims have been received, according to Feinberg’s team, including 192 for deaths, 102 for Category One injuries and 1,286 for Category Two.
Claims will be accepted until Dec. 31. The automaker has set aside as much as $600 million into the fund to pay on approved claims; however, executives at the automaker have said there would be no limit on the payouts. Feinberg’s team has the final say on the approval of payouts.
The existence of the fund hasn’t prevented some victims from suing the automaker, but they’ve been few and far between. However, two class-action suits have been filed this year against the automaker each seeking $10 billion.
Each suit, one earlier this year and the second earlier this month, was filed by the Seattle-based firm Hagens Berman Sobol Shapiro LLP.
“The value of all GM-branded vehicles has diminished as a result of the widespread publication of those defects and New GM’s corporate culture of ignoring and concealing safety defects,” the lawsuit states, referring to the post-bankruptcy carmaker as “New GM.”
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According to the suit, the alleged losses in value of GM vehicles produced since the maker emerged from bankruptcy protection in July 2009 resulting from the ongoing disclosures of safety-related problems.
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Through July of this year, the law firm behind the suit says 27 million vehicles would be affected. Steve Berman, one of the lead attorneys, told the Bloomberg news service he expected that more than 20 million owners would actually participate.
The law firm cited several examples to back its claim, alleging that a 2009 Pontiac Solstice is worth $2,900 less than it would have been had GM’s reputation not been damaged by the recall crisis. It also said Chevrolet Camaros built between 2010 and 2011 are worth $2,000 less than they might otherwise have brought at trade-in.
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Significantly, Hagens Berman was behind a similar lawsuit filed against Toyota following its own recall crisis several years ago. The Japanese automaker ultimately paid out over $1 billion to settle the class action.
For its part, GM has so far defended itself against the first lawsuit and is indicating it will take a similar stand against the new one, declaring in an e-mail that it will “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.”
