We have posted several times over the past few years about the major recall and consequences of faulty ignition switches in General Motors’ vehicles. One case garnered a great deal of attention when the parents of a young Georgia woman who died due to a faulty ignition switch, sued GM. About 125 deaths were originally considered to be due to the faulty switches. Now there are more. The defective devices resulted in the recall of 2.6 million vehicles. Since the early stages of this recall, there are now hundreds of personal injury and wrongful death cases.
According to Reuters, attorneys for vehicle owners with defective switches who have suffered various damages, including fatal injury, are on the verge of losing a deal they were about to enter into with a trust holding GM assets. The plaintiffs lawyers are calling foul on GM, arguing that the company interfered with resolving the case through settlement using unsavory tactics, including threats. The “deal” would have resolved millions of claims, although about 2.5 million would have remained in another court. It took nearly half a year to come up with the settlement which now is at risk of unwinding. The trust, which maintains pre-bankruptcy assets of the company, was integral to this deal.
The plaintiffs’ attorneys are claiming that General Motors met with trust representatives and put undue pressure on the trust to pull away from the resolution of this huge case. Immediately after this meeting, the trust reneged on the deal they had reached (although had not yet signed) with the plaintiffs. Although no agreements had been signed, the negotiations were months and months of work for both the plaintiffs’ attorneys and the trust representatives.