Lawsuit that showed GM hid ignition switch problem settled

DETROIT — A Georgia lawsuit that helped expose General Motors’ failure to disclose a deadly defect in small-car ignition switches has been settled out of court for a second time.

Lawyers representing the parents of crash victim Brooke Melton announced the settlement this morning, but did not reveal the terms.

Engineers hired by lawyers working for Ken and Beth Melton found that GM modified the switches after finding problems, but failed to disclose that under oath in legal depositions or to government safety investigators. Later, congressional staffers and GM found documents showing the company knew about switch problems for a decade, yet it failed to recall the cars until last year.

Brooke Melton, a 29-year-old pediatric nurse, died in a March 2010 crash near Atlanta when the ignition switch of her Chevrolet Cobalt slipped out of the run position. That shut off the car’s engine, causing it to lose power steering and brakes and disabling the air bags, the family’s lawsuit alleged. Melton’s Cobalt skidded into another vehicle.