In November 2014, General Motors recalled over 2 million Chevrolet Cobalts and other small cars for an issue regarding the ignition system in the motor vehicles. The ignition switches were faulty, and could unexpectedly lead to the engine of the car turning off, thereby causing auto accidents. This issue so far has lead to 124 deaths, 14 serious injuries, and 237 minor injuries. In 2014, GM spent over $3 billion on recalls, as well as additional money in order to compensate for the victims related to the faulty ignition switch.
Recently, General Motors completed a review of 4,342 claims and declared 124 deaths eligible for at least $1 million. According to the Detroit Free Press, those eligible for compensation have 90 days to accept or reject the offer. As of now, not all offers that have been accepted have been payed. These claims were filed by families of people who either died or were injured by the ignition switch issue, which in addition to unexpectedly turning the engine off, could also cut electrical power to steering, air bags, and other functions of the car.
GM said last month that they have set aside $625 million in order to compensate families, and as of July 17, the company has paid out $280 million. Those families who filed claims in the 124 death cases will receive a minimum of $1 million settlements each. The settlement amount could be larger, depending on the age of the person killed, his or her profession, salary, and whether or not they were a parent.
If you have been injured in a car crash involving a recall or defective car, call The Michigan Law Firm, PLLC. Our accident attorneys are here to help you with questions about insurance problems, medical expenses, and pain and suffering benefits as allowed by Michigan law. Call us today, at 844.4MI.FIRM for a free consultation.