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GM Wins Ruling on Ignition Switch Liability
A federal court in New York City has rejected claims that General Motors Co. owners whose cars were equipped with defective ignition switches should be compensated for lost value of their vehicles.
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A federal court in New York City has rejected claims that General Motors Co. owners whose cars were equipped with defective ignition switches should be compensated for lost value of their vehicles.
U.S. District Court Judge Jesse Furman says bellwether complaints in California, Missouri and Texas failed to establish the fair market value of their vehicles, thereby making it impossible to assess damages, Reuters reports.
Furman postponed a tentative trial on the matter scheduled for mid-January and urged parties to reconsider an out-of-court settlement.
In 2014, GM belatedly recalled 2.6 million older model cars to replace ignition switches that could be jogged out of the “run” position by a sharp bump. The defect—which could shut off the engine, power steering, power brakes and airbag system in a crash—was blamed for 124 fatalities.
GM paid more than $2.6 billion in penalties and settlements with victims, $900 million of which was to settle criminal charges brought by the U.S. Dept. of Justice.
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