Car manufacturing company General Motors will be paying upwards of $575 million in settlements for hundreds of civil lawsuits filed against it. The lawsuits are in relation to faulty ignition switches that caused hundreds of injuries and wrongful deaths.
The company issued a statement that it had reached a settlement deal with Bob Hilliard, the lead attorney in 1,385 injury and death cases. The proposed settlement will reportedly also cover a 2014 class-action case filed by shareholders who claimed the company’s actions had lowered their stock value. Neither GM nor Hilliard would say exactly how much of the settlement will be going to the shareholders, but Hilliard has expressed confidence that all of the victims will be fairly compensated.
In addition to the $575 million reportedly going out in settlements for the victims and shareholders, GM is also expected to pay up to $900 million in fines to avoid prosecution for charges of wire fraud.
This settlement will go a long way towards making reparations to the victims and their families. General Motors CEO Mary Barra also brought on a new safety chief that will report directly to her. The new chief reportedly hired 35 new safety investigators as well.
The company is also reviewing a number safety issues brought up in 2014 after a record 84 recalls, which covered more 27 million vehicles in the U.S. alone. This year has seen 33 recalls already.
Those who have been injured due to an auto defect should consult a lawyer as soon as possible to discuss their options going forward. Companies should be held accountable for any harm their products cause to consumers.
Targan Pender & Strickland, P.C. – Atlantic City personal injury lawyers