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GM Ignition Switch Compensation Plan Paid Out $594 Million
General Motors Co.’s independently conducted compensation plan for victims of its defective ignition switches reports it paid out a total of $595 million, with one claim still unresolved.
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General Motors Co.’s independently conducted compensation plan for victims of its defective ignition switches reports it paid out a total of $595 million, with one claim still unresolved.
The fund was led by Kenneth Feinberg, an attorney who specializes in compensation for disasters. He previously handled such claims related to the 9/11 terrorist attacks, BP’s oil spill in the Gulf of Mexico and the Boston Marathon bombings.
Feinberg’s team collected 4,343 claims between August 2014 and January 2015. It completed settlements for 124 fatalities and 275 significant injuries four months ago, according to its final report.
The total payout was slightly less than GM originally estimated. Victims who received compensation agreed not to sue the company for additional damages later. The fund says 9% of victims (37 claims) who were presented with offers—all related to injuries rather than fatalities—opted not to accept them.
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