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GM Awaiting Feinberg Recommendations For Recall Cost Estimate

Tina Robinson3 years ago

General Motors CEO Mary Barra announced on Tuesday at a shareholders meeting that the automaker was waiting for victims’ compensation recommendations before estimating the total cost of the ignition switch recall, according to the Wall Street Journal.

Ken Feinberg to Decide Victims’ Compensation

GM hired victims’ compensation specialist attorney Ken Feinberg in April to help the company navigate options for compensating families of loved ones injured or killed in accidents involving the recalled vehicles. Feinberg’s recommendations are expected to be completed later this month.

On Thursday of last week, GM reaffirmed that it would uphold its “moral responsibility” to victims when it announced the results of an internal inquiry into the decade long scandal. Barra and GM President Dan Amman both confirmed that a GM compensation fund would be established and eligibility criteria would be at the sole discretion of Feinberg. Claims can be submitted beginning Aug. 1.

Today, Barra told shareholders the automaker was awaiting those recommendations from Feinberg before estimating the total cost of the ignition recall. Financial and auto experts told the Wall Street Journal the cost could range from $5 billion to $7 billion.

Thomas J. Henry is representing more than 1,000 GM recall victims across the United States and has been investigating injuries and deaths linked to the recall since day one. The firm launched a nationwide media investigation into the recall in April, which brought forth thousands of affected individuals who had information critical to the investigation – information that the firm has handed over to federal agencies also investigating GM’s sluggish response the recall. As more and more individuals have flocked to Thomas J. Henry for representation, the firm has continued to push GM for a victim settlement fund. The firm has had several talks with GM’s victim compensation expert Ken Feinberg regarding appropriate victim compensation for the thousands affected by a fatal design flaw in ignition switches which left numerous dead and countless others seriously injured. 

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