gm ignition-switch defect Filing period for compensation opens

Staff report

DETROIT

It is expected that hundreds of claims will be filed quickly to the General Motors compensation fund, since Friday was the opening day they could be submitted.

The program is designed to compensate those or the families of those who were injured in crashes caused by the company’s ignition- switch defect. The fund is being overseen by Kenneth Feinberg, who also was responsible for overseeing compensation for the BP fund for those impacted by BP’s oil spill in the Gulf of Mexico.

Lawyers representing victims estimate the problem resulted in 60 deaths, though GM has linked only 54 accidents and 13 deaths to the ignition-switch failure.

Reuters is reporting there “may be hundreds of claims filed in the first few days, and a similar number or more in the months to come.”

Three attorneys alone stated they intended to file 240 or more claims, according to Reuters.

“We are taking responsibility for what has happened by taking steps to treat these victims and their families with compassion, decency and fairness,” said GM CEO Mary Barra in a statement. “We made serious mistakes in the past, and as a result, we’re making significant changes in our company to ensure they never happen again.”

The program is expected to cover approximately 1.6 million 2003-2007 model-year recalled vehicles manufactured with an ignition-switch defect and approximately 1 million 2008-2011 model-year recalled vehicles that may have been repaired with a recalled ignition switch, according to a GM statement.

Anyone who accepts money through the compensation fund must drop any lawsuit against GM. The program does not require lawsuits against the company be dropped before filing a claim or while waiting to see how much money will be offered through the fund.

Those wishing to file a complaint under the fund have until the end of the year to do so.