General Motors ignition switch settlement wins U.S. court approval

by SpeedLux
General Motors

General Motors on Thursday won preliminary American court approval of a $120 million settlement with vehicle owners who said faulty ignition switches caused their vehicles to lose value.

U.S. District Judge Jesse Furman in Manhattan granted approval at a hearing which was conducted by phone.

The accord would resolve the last major piece of litigation over the automaker’s ignition switches associated to vehicle stalls and air bags that failed to deploy, and also 124 deaths.

Final approval is still needed, after owners are notified of their rights.

Since 2014, the defect has led the automaker to recall over 2.6 million Buick, Cadillac, Chevrolet, GMC, Oldsmobile, Pontiac and Saturn vehicles, dating back over a decade.

The automaker has also paid over $2.6 billion in penalties and settlements.

The automaker would fund $70 million of the settlement, while a trust set up in connection with its 2009 bankruptcy would add $50 million. The automaker would pay for the plaintiffs’ lawyers separately.

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