Amanda Antell  |  May 21, 2015

Category: Consumer News

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General MotorsIn a recent update released by General Motors (GM), regarding the defective ignition switches that were found in some of their cars, 100 deaths have been reported. The company’s ignition switch recall compensation fund officially being updated their roster of eligible claims for reimbursement to reflect this number.

The GM Ignition Compensation Fund was established by General Motors to compensate victims and their families of any damage they incurred due to their faulty GM vehicles.

So far, the compensation fund has received approximately 4,342 claims, with 626 applications yet to be reviewed, that were submitted between August 2014 and the settlement fund deadline of Jan. 31, 2015. However, the company declared that about 72 percent of these applications may be deemed ineligible for any form of compensation.

The staff in charge of the GM recall settlement fund has found 12 cases eligible for significant amounts of compensation. Each of these claims involved death of the victim or serious injuries like brain damage, severe burns, and severed limbs.

The staff also found 172 people who suffered minor injuries and required hospitalization or outpatient treatment have also been offered compensation. Last month, GM Chief Financial Officer Chuck Stevens stated that the company raised its estimated total cost of the compensation fund from $400 million to $550 million.

Overview of GM Recall Allegations

The GM defective ignition switch recall involved over 2 million cars, mostly Chevrolet Cobalts and Saturn Ions, from the model years 2003 to 2007. Experts describe the defective ignition switches as car parts that were composed of cheap materials.

The ignition switch would reportedly switch from on to off unexpectedly due to the excessive weight of key chains or other attachments. This caused the engines of the cars to suddenly shut off, as well as its safety features, powering steering, and air bags. An independent investigation performed by a former federal prosecutor found that GM engineers had known about the problem as early as 2003.

Similar findings were uncovered when The Wall Street Journal conducted its own investigation, suggesting that GM officials knew of the ignition switch defect as early as 2001. Lawyers are investigating the auto company for failing to address the problem in a timely manner and for also failing to warn GM customers. Experts state that it would have only cost the company a few extra dollars to produce and install adequate ignition switches.

Other allegations claim that GM attorneys knew that numerous deaths may have been caused by the ignition switch defect by 2013 and settled with families of some victims. However, these settlements did not come until General Motors officially admitted this mistake and recalled the defective vehicles in February 2014. As of now, General Motors and its dealers have replaced 70 to 75 percent of the ignition switches in the recalled vehicles.

According to an independent review by the Center for Auto Safety, experts believe that the GM defective ignition switch vehicles have been linked to as many as 300 deaths. However as of May 2015, only 100 death claims have been submitted to the compensation fund, which is estimated to cost the company a total of $550 million.

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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