All of the plaintiffs are seeking compensation for injuries or deaths involving accidents after GM’s bankruptcy restructuring in 2009. Most of the crashes involved the tens of millions of vehicles that GM recalled only after the first ignition-switch campaign was announced in February.
One of the lead attorneys behind the lawsuit, Robert Hilliard, argues that GM is liable for injuries and deaths related to the other recalls, not just the ignition-switch issue.
“GM needs to step up and acknowledge the blood on its hands from all of these recalled cars,” he said, as quoted by CNNMoney.
GM has set aside $400 million for its compensation fund, though financial disclosures caution that it could cost $600 million or more. Only ignition-switch claims will be accepted, though the fund will provide compensation for pre-2009 accidents.
The company currently faces hundreds of separate lawsuits, including several legal battles that continue to dispute the bankruptcy shield. Perhaps the biggest financial hit could come from criminal charges, likely taking inspiration from the $1.2 billion settlement that Toyota agreed to pay over the unintended acceleration debacle.
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