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GM Exploring Recall Victim Compensation Fund

Tina Robinson3 years ago

A recent report from Automotive News indicates that General Motors may be moving towards the establishment of a compensation program for victims of the ignition switch recall. Attorney Kenneth Feinberg, who was hired by GM to explore options following the recall, said in an interview with CNBC the company had asked him “to help develop some sort of program that might be used to compensate eligible claimants.”

Feinberg to Establish GM Compensation Program

Based on initial conversation with GM, Feinberg has confirmed the automaker has asked him to help develop a program to compensate victims affected by faulty ignition switches. He cautioned, however, that specific details such as who would be eligible, if there will be a fund and how much money would be allocated remain to be seen. It could be “several weeks” before specific details of the program are known.

GM announced it had hired Feinberg on April 1 as part of testimony given before Congress by CEO Mary Barra. Feinberg has worked in the past to administer compensation funds for victims of the 9/11 attacks, BP oil spill and Boston Marathon bombing.

Greg Martin, a spokesman for GM declined to comment directly on the matter but said in an e-mail the company has recognized it has “civic and legal obligations.”

Approximately 2.6 million vehicles have been recalled since February due to faulty ignition switches. GM faces numerous lawsuits from victims and their families seeking relief for accidents and economic losses caused by the recall. At least 13 deaths associated with the defective switches has been acknowledged by GM. 

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