Who Will Pay for GM Ignition Recall Accident Damages?

by Staff Blogger | December 19th, 2014

Millions of Americans are affected by the massive GM recall resulting from faulty ignition switches in many vehicle makes and models. GM has agreed to pay compensation to those injured or who lost loved ones as a result of accidents caused by the faulty parts. But just where that money will come from is still up for contention.

According to Detroit News, the GM recall involved 2.6 million cars equipped with ignition switches that could turn to the off position while cars were in motion. This caused drivers to lose control and the airbags to fail to deploy, which claimed 42 lives and left 52 others injured.

These accidents have led to more than 170 lawsuits, many of which were settled by GM. But GM is attempting to use funds set aside from its 2009 bankruptcy to pay accident victims. Creditors are arguing that the funds shouldn’t be used and doing so should be considered fraud.

The creditors say that in order to qualify to use the funds, GM would’ve had to disclose information about the faulty parts prior to reaching their bankruptcy agreement.

The Nashville personal injury lawyers with Ponce Law want you to know that you may be entitled to compensation if you were injured as the result of an accident a recalled GM vehicle. We’re here to help you get the money you deserve. Call us today at (800) 363-9113 to learn more about how we can help.