![]() ![]() In accordance with its Final Approval Order, the Court hereby grants final approval to the Settlement Agreement as fair, reasonable, and adequate pursuant to Federal Rule of Civil Procedure 23(e). Venue in the Southern District of New York is proper. 14-MD-2543 (JMF) on Septem("5ACC") and the Actions. The Court has personal jurisdiction over all Plaintiffs, the Class and all Class Members, New GM, the GUC Trust, and AAT, as well as subject matter jurisdiction over the claims asserted in the Fifth Amended Consolidated Comp laint filed in In re: General Motors LLC Ignition Switch Litigation, Case No. That was not discussed at the hearing, and Berman declined to comment.Court Description: FINAL ORDER AND FINAL JUDGMENT GRANTING FINAL APPROVAL OF THE ECONOMIC LOSS CLASS ACTION SETTLEMENT, CONFIRMING CERTIFICATION OF THE ECONOMIC LOSS SETTLEMENT CLASS, AND DISMISSING ALL ACTIONS WITH PREJUDICE: IT IS HEREBY ORDERED, ADJUDGED, AND DECREED: Jurisdiction. ![]() Godfrey told the hearing the trust had $400 million in its own assets that could be used to fund a settlement, instead of requiring GM to turn over stock.Īfter the hearing, GM spokesman Patrick Morrissey said the automaker had been told the deal would include a $15 million payment from the trust releasing it from liability, effectively shielding that $400 million. "The notion from new GM that this is somehow an inappropriate procedure is crazy," he said. He added that he expected to ask the federal bankruptcy court in Manhattan by Tuesday to set the deal in motion.Ībout 2.4 million claims, involving vehicles sold after GM's bankruptcy, would remain, Berman said. In a phone interview after the hearing, Berman said the settlement would resolve about 11.9 million economic loss claims and between 400 and 500 personal injury and wrongful death claims. He said that would trigger a provision in GM’s bankruptcy reorganization plan requiring "new GM" to transfer about $1 billion in stock to the trust, which would be used to fund the settlement. GM said in a statement it would fight the settlement in court, calling it a “contrived scheme” doomed to fail.Īccording to Steve Berman, the plaintiffs' lawyer, the settlement called for the trust to take on $10 billion of ignition switch claims, which would boost the total claims against the trust to more than $35 billion. ![]() The claims have expanded to include a variety of alleged defects in millions of cars. One type of switch has been linked to nearly 400 injuries and 124 deaths. The ignition switch litigation consolidated before Furman stems from GM's 2014 recall of 2.6 million vehicles with defective switches. Godfrey said the settlement was a result of collusion between the plaintiffs and the trust, and "a complete surrender and sellout using new GM's money." District Judge Jesse Furman in Manhattan the Detroit-based company was given no say in the deal negotiated between the plaintiffs and a trust set up for creditors of “old GM,” which holds many liabilities predating the automaker's 2009 bankruptcy. GM lawyer Richard Godfrey strongly criticized the agreement, telling U.S. 12 August 2017: Plaintiffs suing General Motors Co (GM.N) over faulty ignition switches and other alleged vehicle defects have reached a $1 billion settlement requiring the automaker to turn over that amount of stock, a lawyer for the plaintiffs said in a court hearing on Friday. ![]()
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