GM to face all recall-related lawsuits in New York

GM to face all recall-related lawsuits in New York

Days after the 325-page report detailing the recall failures was published, General Motors (GM) is holding the first shareholders meeting under Mary Barra’s leadership.  While not the only point of discussion, the shareholders will hear about the issues directly from Barra for the first time.

Before the meeting, Barra held a news conference to reiterate GM’s commitment to creating a victims’ fund to adequately compensate all those impacted by the ignition switch defect. By hiring Kenneth Feinberg, an attorney who specializes in victims’ funds, including the BP oilrig incident and the bombings at the Boston Marathon, Barra believes GM needs to “do the right thing for those who were harmed.”

Protestors outside the corporate headquarters arrived yesterday to attract the attention of the visiting shareholders.  They’re vocal in their attempt to make everything as expensive as possible and demand the largest amount of money to keep GM from making the same mistakes again.

Even with Barra’s frequent updates and the recent report conducted by an outside attorney citing incompetence not cover up as the reason for the recall delay, some of the victims’ families believe the automaker is still hiding information.

The company did receive a small victory in the consolidation of more than 80 lawsuits regarding the recall and faulty detent plunger. The cases will take place in a single proceeding in Manhattan, in the same district as the judge who oversaw GM’s 2009 bankruptcy and is currently reviewing its request to throw out accidents in the lawsuits occurring before July 2009.

This case features owners of the recalled compact cars who feel their vehicles have lost value due to GM’s neglect of a decade-long problem attributed to at least 13 deaths. They are seeking economic damages and compensation.

Using Feinberg, GM hopes to settle all wrongful death and personal injury lawsuits associated with the massive recall outside of court using the aforementioned victims’ fund. Part of the process of determining compensation amounts is identifying all those who qualify.

Even with recent progress for GM and its victims, the road ahead still poses many obstacles. Let us help you if you or someone you love was affected by GM’s lack of action in recalling more than two million vehicles that led to many deaths and accidents.


Bomey, N. (2014). GM CEO Barra promises no limit on victim compensation. USA Today. [Link]

Colias, M. (2014). GM ignition-switch protestors expected at annual meeting. Automotive News. [Link]

Stout, H. & Vlasic, B. (2014). GM suits will proceed as one case in New York. The New York Times. [Link]


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