General Motors GM.N was hit Tuesday with an airbag recall lawsuit filed by more than 650 people who were injured or killed in accidents relating to defective ignition switches linked to cars that have been recalled this year.
More than 600 plaintiffs are now suing G.M. Some are filing wrongful death claims for people who have died, while others are seeking damages for injuries suffered.
Since the beginning of the year, GM has recalled over 15 million models worldwide due to defective ignition switches. The company has set up a program, run by lawyer Kenneth Feinberg, to compensate victims of crashes involving about 2.6 million cars which were of small car models, mostly Cobalt and Ion which GM linked to 54 crashes and 13 deaths.
This latest lawsuit covers those injuries and deaths seen as not being eligible for the 2014-approved compensation program. The new case, filed by Robert Hilliard of Silverman Thompson Slutkin & Whitehill, LLP, includes those who had accidents with a recalled car as well as those for which the airbags deployed—both excluded from the defendant’s program.
Feinberg, who is leading the compensation process for victims’ families, said that airbag non-deployment is a key sign that the ignition switch may not have been working properly.
GM faces lawsuits over the deaths and injuries that resulted from its faulty ignition switches. A spokesman for GM, Jim Cain, commented that Feinberg was in charge of deciding guidelines for the trustee process and GM had not set a limit on how much they were willing to pay out for claims. “It’s our goal to treat people fairly and compassionately throughout the process,” Cain said.
The program will also underpay claims for people who do not stay at the hospital for 1 night. The $20,000 payment can be contrasted to other settlements – where Volkswagen will pay out close to $26 billion.
The incident cited in the lawsuit occurred after General Motors exited bankruptcy in July 2009. Plaintiff, Hilliard, said this is when fatalities were supposed to stop occurring. While GM has announced their intentions to stop meeting ignition switch standards, more information is still needed before we can evaluate the efficacy of their proposed plan.
GM is being sued over deaths and injuries linked to ignition switches, recently filing a motion asking a bankruptcy judge for permission. GM is not responsible for pre-2009 incidents but has corporations with the potential to be made liable.