GM Ignition Switch Lawsuit Update
GM Accused of Undermining $15 Million Ignition Switch Settlement
August 22, 2017
Plaintiffs in the complex and ongoing lawsuit concerning allegedly defective ignition switches in several General Motors vehicles have accused the automaker of attempting to sabotage a proposed $15 million settlement in the large Multi-District Litigation (MDL) case.
Plaintiffs allege that, though GM’s bankruptcy trust had appeared ready to accept the terms of the settlement, the defendant backed out at the last minute, after months of negotiations. Plaintiffs assert that such an action represents a lack of good faith on the part of GM; and, furthermore, raises questions of contract violations, according to plaintiffs’ counsel.
For its part, GM states that though it had been involved in negotiations in the ignition-switch settlement, the talks were non-binding.
The heart of the complaint in the case is that certain models of GM vehicles are alleged to have an ignition switch that can slip out of the “run” position, thereby turning the vehicles off and preventing their airbags from functioning. More than 100 deaths have been connected with this purported defect, and GM issued a wide recall of affected vehicles in 2014.
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