Tag Archive for General Motors

General Motors, Hyundai, and Kia Faulty Ignition Switch Lawsuits

ignition with key
Several car companies have been taking hits in the courts of law recently. General Motors is in the middle of litigation pertaining to faulty ignition switches. In addition, Hyundai and Kia have reached preliminary settlements related to lawsuits over misstated fuel-economy figures for certain car models from 2011-2013.

For a full list of affected models, you can visit https://kiampginfo.com/overview/affected-models (Kia) and https://hyundaimpginfo.com/customerinfo/affected-models (Hyundai).

According to Automobile Magazine, the two settlements would total approximately $395 million. If approved, individuals would receive slightly over $700 under the gas improvement program.

In a stroke of good luck for General Motors, a federal judge ruled that the company could not be sued over death and injury claims related to defective ignition switches. The reasoning behind this is because the 2009 government takeover shields them from liability pertaining to previous actions.

Even though GM setup a victims’ compensation fund, this was a big blow to the victims and their families who were in the process of pursuing justice. The plaintiffs may still have a shot depending on what happens in appeals court.

Photo Credit: Start Me Up by Jeff Golden

Written by Lulaine Compere

$5 Million GM Defective Ignition Switch Settlement

General Motors has settled with the family of Brooke Melton, a 29 year old nurse from Georgia who died due to a defective ignition switch in her 2005 Cobalt. Her parents accepted an undisclosed amount from GM’s compensation fund, in addition to $5 million that GM paid the family to settle a prior lawsuit.

Melton’s death played a pivotal role in triggering widespread ignition switch recalls. In early 2014, after concluding that millions of older vehicles contained faulty switches, GM began launching recalls.

According to Lance Cooper, the family’s attorney:

“The Meltons’ work is done,” . . . the parents, Ken and Beth Melton, were “emotionally exhausted” and felt satisfied that GM acknowledged through a payout from its compensation fund that their daughter’s death was caused by the faulty ignition switch (source: wsj.com).

Several of the victims’ families have received payouts from the GM compensation fund. The fund’s administrator, Kenneth Feinberg, is known for his work with compensation funds setup for BP, 9/11, and the Boston marathon bombing.

While this specific case was resolved, there are several GM ignition switch related class action and state lawsuits slated to begin this upcoming May.

After a contentious hearing on Capitol Hill, the company set aside between $400 and $600 million to payout the claims. To date, GM has reportedly paid out 67 death claims filed against the fund.

To read the full article on The Wall Street Journal website, visit http://www.wsj.com/articles/family-of-gm-ignition-switch-victim-settles-for-more-than-5-million-1426529612.

Written by The Team at RD Legal Funding