GM Creating a Fund for Ignition Switch Recall Victims

General Motors is currently negotiating a settlement fund to cover GM ignition switch recall class action lawsuits. It could translate to hundreds of thousands of dollars for accident victims and their families.

GM has been under fire due a massive recall that ultimately involved more than 2.4 million vehicles that includes cars made by Chevrolet, Pontiac, Saturn and others.

The GM ignition switch recall was issued due to an alleged defect in the circuitry of the ignition switch. This ignition switch defect can cause the affected vehicles to switch into “standby” mode, which turns off the engine and deactivates the airbags. This could cause a major accident if this occurred while the vehicle was moving.

GM’s own investigations have revealed that the defect caused a number of accidents and deaths. Additionally, government investigators have come to similar conclusions.

The latest developments, which were revealed at a press conference on June 30, indicated that GM was starting a fund to compensate the families of people who died in accidents linked to defective ignition switches. According to the terms of the fund, GM class action lawsuit settlements will start at $1 million for families affected by deaths linked to the GM ignition switch issues.

Additionally, the company plans on paying $300,000 to each spouse and dependant who lost a loved one in accidents linked to the GM ignition switch problems. GM announced that the fund will be uncapped, meaning that the company will not place a limit on the number of people who are compensated by the fund.

The litigation over the ignition switch recall is taking the form of a GM ignition switch class action lawsuit. Class action lawsuits are a type of group lawsuit where a number of individuals allege that they have suffered similar harm at the hands of the same defendant and file a  lawsuit together. Group lawsuits like the GM ignition switch class action lawsuit are designed to help streamline the legal process by combining tens, hundreds, or even thousands of potential individual lawsuits into a single class action lawsuit. This saves resources for everyone involved. The plaintiffs can share legal costs, the defendant only faces a single lawsuit and the court system only has to face a single lawsuit.

This is not the only GM class action lawsuit the car company is facing related to the ignition switch recall. Another group of plaintiffs has filed a separate GM economic loss recovery class action lawsuit. These plaintiffs allege that they have suffered economic losses, since GM’s recalls have decreased the value of their vehicles.

Join a Free GM Recall Injury Class Action Lawsuit Investigation

If you or a loved one were severely injured or died in an automobile accident related to the GM ignition recall, you may be eligible to participate in the class action lawsuit and pursue compensation. The GM recall class action lawsuit will attempt to hold the automaker accountable for manufacturing and selling defective vehicles and failing to address safety flaws that endangered hundreds of thousands of customers. See if you qualify now at the GM Ignition Switch Recall Class Action Lawsuit Investigation.