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General Motors Offers Victims over $1 Million Each

by Brayton Purcell LLP | Jul 14, 2014 | Product Liability

You might recall General Motors’ delayed recalls of over 9 million vehicles in early 2014. It took ten years and thirteen deaths before the American motor company decided to alert the public to serious faulty ignition switch problem. More and more vehicles are being recalled with the death count growing, and GM is already trying to avoid being sued by victims by offering settlements to them and their families.

cars in a parking garage

General Motors is offering $1 million to the families of those killed in a crash in one of the recalled vehicles. They are offering an additional $300,000 to the surviving spouse and dependents of victims, and other sums for those with serious or minor injuries caused by a recalled vehicle malfunction. Drivers in other non-GM vehicles as well as pedestrians involved in crashes are also eligible for this compensation fund – GM said it has no plans to cap the total amount.

“Money is a pretty poor substitute for loss… but we can’t restore limbs,” GM consultant, Kevin Feinberg said.

The payouts to victims will be based on the lengths of their hospital stays, and those who accept the funds will waive the right to sue GM in the future over the ordeal. Participating in the claims process is an option, though, as the waiver does not take effect until the victim accepts compensation. Those who wish to take part can file a claim with GM between August 1 and December 31, 2014.


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