Owners of vehicles affected by the GM power ignition switch defect still have a chance to make a claim for compensation for personal injuries.
In GM cars affected by this defect, the vehicle’s ignition switch is prone to move to the “off” position merely by being bumped by a vehicle occupant, or even by being yanked around by a heavy keychain. The defect can cause essential powered systems to shut down in the middle of vehicle operation—systems like power brakes, power steering, airbags, and seatbelts.
The sudden loss of power can not only cause a crash but also make the resulting injuries worse through the disabling of powered safety features. So far, the defect has been blamed for at least 124 deaths and 275 injuries.
Evidence suggests GM was aware of this defect as early as 2001 when GM engineers noted problems with an ignition switch destined for the Saturn Ion.
Records of vehicle testing reveal that GM engineers reported ignition switch failures several times over the next few years. The company also received post-market reports of crashes in which the vehicle’s ignition switch was not in the “on” position, or in which the airbags failed to deploy.
Yet it wasn’t until 2014 that GM finally issued a recall to fix the affected vehicles. The recall initially affected only 800,000 Chevrolet Cobalt and Pontiac G5 vehicles, but the company later expanded it to cover about 2.6 vehicles from several different makes, models, and model years.
Legal Fallout From the GM Power Ignition Switch Defect
The GM power ignition switch defect has caused the company legal trouble on a number of different fronts. In addition to many private defective products lawsuits, enforcement actions by government regulators have resulted in millions of dollars in penalties.
Last month, the U.S. Securities and Exchange Commission (SEC) levied a $1 million fine against GM for accounting practices connected to the defect. The SEC accused GM of failing to implement accounting controls that would determine the potential need for a recall and estimate the possible losses relevant to the defect.
According to the SEC, GM had been aware for a while that the ignition switches were a safety problem but failed to pass that information with its accountants until November 2013. The lack of communication prevented the company’s accounting department from properly addressing the liabilities associated with the defect, the SEC says.
GM has already paid hundreds of millions of dollars in claims related to this defect. Claims involving personal injury and death have yielded around $875 million in payments.
Shareholders are also bringing their own claims to recover their investment losses. GM has already paid out $300 million to settle these investment-related claims.
Owners of affected GM cars can still make a claim. Personal injury attorneys are interested in hearing from car owners who were injured due to the GM power ignition switch defect in cars of model years 2000 and later, and who have documentation such as medical records, insurance claims, or police reports that could link their injuries to the defect.
Qualifying car owners may participate in the current investigation free of charge.
In general, GM recall lawsuits are filed individually by each plaintiff and are not class actions.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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