GM agrees to $575M settlement for ignition-switch lawsuits

September 17, 2015
General Motors has agreed to pay $575 million to settle several lawsuits associated with the 2014 ignition-switch defect crisis.

The funds have been set aside to resolve two different class-action lawsuits, starting with a death and injury case that includes claims for nearly 1,400 accident victims. GM suggests the litigation represents more than half of the personal-injury plaintiffs who have lawsuits pending in the multi-district litigation filed in the Southern District of New York.

The second lawsuit was filed in the Michigan by disgruntled shareholders who argued that GM failed in its obligation to report material risks to investors.

“The parties to these agreements have resolved difficult claims without the burden, expense and uncertainty of litigation,” said GM general counsel Craig Glidden.

The automaker did not disclose the specific settlement values for each lawsuit. The combined payout will be reflected in GM’s third-quarter financial results, which could also include the estimated $900 settlement that was reportedly reached with federal prosecutors.

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