GM Agrees to First Major Settlement in Faulty Ignition Switch MDL

Average Settlement Values Could Top $400,000 Per Claimant

GM announced today that it reached an agreement to settle approximately 1,380 individual death and personal injury claims. Though the actual settlement value was not disclosed, GM indicated that it will record a charge of $575 million in the third quarter of 2015 as a result of the settlement, which would translate to a total value in excess of $400,000 per claimant. Noted in its deferred prosecution agreement with the Office of the U.S. District Attorney for the Southern District of New York is that GM has agreed to establish “a full and independent victim compensation program that is expected to pay out more than $600 million in awards.”

The claims arise out of faulty ignition switches installed in GM vehicles that could, as conceded by the company in its securities filings, “Unintentionally move from the ‘run’ position to the ‘accessory’ or ‘off’ position with a corresponding loss of power, which could in turn prevent airbags from deploying in the event of a crash.” 

GM ignition switch cases are among the many types of claims that Counsel Financial accepts as collateral to secure a line of credit or attorney fee advance. If your firm is looking to expedite realization of its attorney fees and disbursements on settled GM ignition switch cases, contact Counsel Financial to discuss attorney fee advance products today.  

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