Missy Clyne Diaz  |  January 23, 2015

Category: Consumer News

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GM ignition switch recall class action lawsuit

Though representing clients in the massive General Motors faulty ignition switch recall has been challenging for many law firms due to the hefty cost of litigation, stringent settlement restrictions and tort reform that caps awards for non-economic and punitive damages, some law firms are offering free consultations to GM owners.

The behemoth automaker has been named as a defendant in two GM ignition switch defect class action lawsuits filed on behalf of 30 million GM consumers who accuse the company of lying about the safety of its vehicles both before and after GM filed for Chapter 11 bankruptcy.

The claims stem from GM’s delayed recall of 2.6 million Chevrolet Cobalts, Saturn Ions and other cars with defective ignition switches that can accidentally turn off the engine and disable power steering, power brakes and air bags.

The consolidated complaints allege that more than 60 recalls affecting more than 27 million GM cars and trucks sold in the United States for model years 1997 to 2014 have caused consumers to lose value in their vehicles.

The first lawsuit covers all GM vehicles sold after the company’s bankruptcy proceedings and accuses the automaker of misrepresentation, concealment and non-disclosure of a numerous serious safety defects.

The second lawsuit seeks compensation for millions of GM vehicle owners “with serious ignition-related safety defects that can cause the vehicle’s ignition switch to inadvertently move from the ‘run’ position to the ‘accessory’ or ‘off’ position during ordinary driving conditions, resulting in a loss of power, vehicle speed control and braking, as well as a failure of the vehicle’s airbags to deploy.”

For years, GM settled with plaintiffs in these cases and part of the settlement agreement required the litigants’ silence, keeping the GM ignition switch defect below the radar, according to The Consumerist.

A lawyer in Georgia, which does not have strict caps on damages in product liability lawsuits, filed a lawsuit against GM in 2011, according to the publication. Since the case involved a side impact collision, in which the car’s airbags were not expected to deploy, GM did not move to settle the case.

“The (New York) Times reports that this gave the plaintiff’s lawyer the opportunity to recruit an engineering expert who discovered the Cobalt’s ignition switch defect,” according to The Consumerist.

“In 2013, following that engineer’s testimony and the testimony of a GM employee, the car company offered to settle the case for $5 million, as long as the family and lawyers never mentioned the defect. Several months later – and years after the first ignition-defect related lawsuits against the company – GM publicly disclosed the defect for the first time and began recalling vehicles.”

GM allegedly knew about the ignition switch defect for at least 11 years before beginning recalls on millions of vehicles with equipped with the defective switches.

A victim’s compensation fund was established on Aug. 1 to award money for accidents. GM has said it expects to spend $400 million on claims, but said the figure could be as high as $600 million.

Each death claim will be paid at least $1 million, along with $300,000 payments to surviving spouses and children for pain and suffering. In addition, it will calculate the economic value of the life lost. Claims will be accepted until Jan. 31.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The GM recall attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or GM class action lawsuit is best for you. [In general, GM ignition switch lawsuits are filed individually by each plaintiff and are not class actions.] Hurry — statutes of limitations may apply.

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.