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G.M. Settles 2 Cases Claiming Faulty Ignition Switches

  • 09-06-2016
General Motors said on Monday it had settled the last two so-called bellwether cases stemming from a faulty ignition switch linked to 124 deaths and 275 injuries.þþThe settlement came on the eve of what would have been the fourth in a series of test trials intended to help the carmaker and plaintiffs define settlement options in 234 injury and death lawsuits that have been consolidated in Manhattan federal court.þþOne of the two cases, which had been set for a Sept. 12 trial, was filed by Stephanie Cockram of Virginia, who sued G.M. over injuries she said she sustained in a June 28, 2011, single-vehicle crash while driving a 2006 Chevrolet Cobalt.þþAnother trial over claims made by Amy Norville of Kentucky, who crashed her Saturn Ion in 2013 seeking to avoid a deer on the road, was scheduled for later this year.þþMs. Cockram’s case would have been the fourth trial on the issue. The first was voluntarily dismissed by plaintiffs during the trial, and G.M. was cleared of liability in two others.þþJames Cain, a spokesman for G.M., said the bellwether trials had been “extremely helpful” in part because they showed “juries care deeply about the cause and contributing factors of each accident and the merits of the claims.” As such, he added, they are “holding plaintiffs to their burden of proof.”þþThe ignition switch can slip out of place, causing engines to stall and cutting power to the brake, steering and airbag systems. The defect prompted the recall of 2.6 million vehicles in 2014.þþBob Hilliard, a lawyer for the plaintiffs, said in an interview that the latest settlement “gives a clear indication that G.M. is interested in attempting resolution of both the federal and various state cases that they believe have merit.”þþSeveral cases are set to go to trial in mid-2017, which may lead to further settlements, Mr. Hilliard said.þþA separate group of cases, arising from incidents that took place before G.M.’s bankruptcy in 2009, could also move forward after a recent appeals court ruling that went against the company.þþG.M. resolved some claims for injuries and deaths blamed on the switch through an out-of-court program administered by Kenneth Feinberg, a lawyer in Washington.þþG.M. has paid about $2 billion in criminal and civil penalties and settlements in connection with the switch. The company previously acknowledged that some of its employees knew about the switch defect for years before a recall was initiated.þþIn two of the other trials, G.M. was cleared in federal court of liability for a 2014 crash in New Orleans and, in a case heard in Texas state court, a jury in August said the company was not to blame for a fatal 2011 crash.

Source: NY Times