It may now seem like ancient history, but GM is still settling ignition switch lawsuits.
General Motors settled a $120 lawsuit related to the devaluation of its vehicles late Friday. The devaluation is a result of the reputation damage suffered by the GM brands over its “alleged” ignition switch defects. GM is still settling suits and claiming it is not responsible.
“GM believes the settlement is fair, reasonable and adequate,” the automaker told Reuters. “GM took the lessons it learned from the ignition switch recalls and has transformed its culture to focus on customer safety.”
GM will contribute up to $70 million toward the settlement from its current accounts. A special trust set up in connection with the Detroit-based automaker’s 2009 bankruptcy will contribute another $50 million. GM is also on the hook for $34.5 million to cover legal fees and expenses of the owners’ lawyers.
For more on the back-story related to GM’s ignition switch defects and its massive settlement costs, please see our prior story: GM Quietly Writing Hundreds Of Millions In Settlement Checks