GM Recall Concessions Hardly Mollify Plaintiffs Bar
From the National Law Journal
General Motors Corp.’s hiring of noted claims attorney Kenneth Feinberg has raised the possibility that it might set up a fund to compensate victims of accidents linked to its recent recalls. But the announcement, made by CEO Mary Barra during testimony before Congress, has done little to placate the plaintiffs bar.
Prominent litigators said Barra was evasive and provided little new information about GM’s handling of ignition switch defects that prompted recalls of 2.6 million vehicles.
“I was extremely disappointed in the CEO’s statement generally,” said Jere Beasley, founding shareholder of Beasley, Allen, Crow, Methvin, Portis & Miles, whose Montgomery, Ala., firm has filed lawsuits against GM. “I’ve never seen a more clear-cut case of liability where the CEO admits liability, in effect apologies and says, ‘Bad things happened.’ ”
GM’s recalls cover a wide range of vehicles with defective ignition switches that might cause engines to stall and prevent air bags from deploying in crashes. The defects have been linked to 13 deaths.
Although she had already apologized for the recalls, Barra’s House and Senate committee testimony on Tuesday and Wednesday marked the first time the company publicly addressed GM’s potential legal liability for defects that, according to lawsuits, the company had known about for the past decade. Under a provision of its bankruptcy, GM was absolved of liability for accidents that occurred before its 2009 filing. But several prominent consumer groups led by Public Citizen called on GM to waive that shield and establish a trust fund for victims of the defects, according to a letter they sent on Tuesday to Barra.
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From the National Law Journal
General Motors Corp.’s hiring of noted claims attorney Kenneth Feinberg has raised the possibility that it might set up a fund to compensate victims of accidents linked to its recent recalls. But the announcement, made by CEO Mary Barra during testimony before Congress, has done little to placate the plaintiffs bar.
Prominent litigators said Barra was evasive and provided little new information about GM’s handling of ignition switch defects that prompted recalls of 2.6 million vehicles.
“I was extremely disappointed in the CEO’s statement generally,” said Jere Beasley, founding shareholder of Beasley, Allen, Crow, Methvin, Portis & Miles, whose Montgomery, Ala., firm has filed lawsuits against GM. “I’ve never seen a more clear-cut case of liability where the CEO admits liability, in effect apologies and says, ‘Bad things happened.’ ”
GM’s recalls cover a wide range of vehicles with defective ignition switches that might cause engines to stall and prevent air bags from deploying in crashes. The defects have been linked to 13 deaths.
Although she had already apologized for the recalls, Barra’s House and Senate committee testimony on Tuesday and Wednesday marked the first time the company publicly addressed GM’s potential legal liability for defects that, according to lawsuits, the company had known about for the past decade. Under a provision of its bankruptcy, GM was absolved of liability for accidents that occurred before its 2009 filing. But several prominent consumer groups led by Public Citizen called on GM to waive that shield and establish a trust fund for victims of the defects, according to a letter they sent on Tuesday to Barra.
Read more in our daily News Update...