GM to Finish Paying Dex-Cool Class Action Settlements

More than 10,000 GM owners covered under a 2008 class action lawsuit settlement may finally get reimbursed for some of their losses. Reimbursement of the GM class action settlement was put on hold when it filed for bankruptcy in 2009.

In 2008, General Motors agreed to pay up to $800 each to owners of up to 35 million GM vehicles that had a factory coolant, called “Dex-Cool,” that was linked to engine failures or cooling system problems. GM began using Dex-Cool in 1995 models and received thousands of complaints from owners concerning engine and radiator problems. In 2003, GM owners filed a series of class action lawsuits against the car manufacturer.

Approval of the GM Dex-Cool settlement was given in October 2008. GM received over 68,000 claims and paid $6.1 million to settle about 40,000 of the claims. However, when the company filed for bankruptcy in 2009, the unpaid Dex-Cool settlement claims remained in bankruptcy as part of the old GM, now known as Motors Liquidation Co.

The Detroit News reports that a new GM Dex-Cool settlement has been proposed and the company has already approved claims totaling $1.3 million for 6,685 GM owners and must still review another 4,614 claims. Under the new Dex-Cool class action lawsuit settlement, owners will get stock in the new GM that will be sold for cash to cover the claims. The amount of stock each class member gets will not be known until the bankruptcy court formally approves the liquidation plan and sets a date for the transfer of stock to GM creditors.

The GM Dex-Cool class action lawsuit settlement covers 1995-2004 model year vehicles, including no-longer-built models like the Pontiac Aztec, Grand Am and Gran Prix. You can find more information on the settlement at www.motorsliquidationdocket.com.