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GM Lawsuit Alleges Cover-Up | DrivingSales News

Lawsuit Alleges GM Mangement Covered Up Ignition Switch Recall

March 17, 2015 0 Comments

GM has dealt with a lot of lawsuits during the past year, however, the latest indicates a high-level management cover-up. For GM, this accusation is par for the course of aftereffects of 2014. After all, 2014 was the year of the recall, and few recalls were as infamous as that of the GM ignition switch.

This has been a vast and widespread effort involving approximately 2.59 million vehicles. GM has hired Kenneth R. Fineberg to administer a fund to compensate those who feel they deserve compensation of some kind due to accidents caused by the GM ignition switch recall. Fineberg feels that the efforts to compensate those impacted have covered just about everyone. In a statement, Fineberg said, “There will always be some individuals who do not receive formal notice and are generally unaware of available compensation. But such individuals appear to be very few in number.”

Certainly, GM has a fund right now, however, has the automaker always been as concerned about the ignition switch defect?

A lawsuit on behalf of Brooke Melton, who died as a result of an accident that has been linked to a faulty ignition switch, is calling out GM for a cover-up. Lance Cooper, an attorney representing Melton’s family told said in a press conference, “They knew it was a safety issue but chose to ignore it.” The Melton family actually initially settled with GM for $5 million, but upon discovery of “other documents” they refilled another suit and even offered to return the initial $5 million dollar settlement.

Those other documents allegedly show that GM executives knew about the faulty and potentially fatal ignition switch problem and brushed it under the rug. Anton Valukus, a former U.S attorney, was hired to investigate the problems at GM that led to the ignition switch failures. He wrote his findings in a comprehensive report. However, Cooper feels that he was wrong. Cooper said in a statement, “Valukas chalked it up to incompetence. It was a cover-up.”

The documents showing the alleged cover-up was reportedly produced “under seal,” thus any copies aren’t currently available for the public. In addition to the pronouncement of a cover-up, the Melton family settled a second lawsuit with GM and was able to keep their $5 million from the first lawsuit.

The GM ignition switch recall has been linked to at least 67 deaths. However, this isn’t the end of litigation for GM. The law firms representing the Melton family are seeking class-action status on another lawsuit against General Motors. According to the Detroit Free Press, they plan to begin depositions of GM execs this May with hopes to have the case to trial by early next year.

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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