'Doing the right thing' for GM victims - KSFY News - Sioux Falls, SD News, Weather, Sports

'Doing the right thing' for GM victims

Posted: Updated:

General Motors offered at least $1 million Monday to the families of those who died as a result of a defect in GM cars.

The automaker will give another $300,000 for each surviving spouse and dependent, in addition to a sum of money that will be determined by the victims' earning potential. GM also said that it will not cap the total amount of money it will pay to the compensation fund.

At least 13 people died, and many more were injured as result of a faulty ignition switch installed in 2.6 million GM cars.

The automaker is also offering money to those injured in crashes that were caused by the defect in the cars.

GM employees first knew that the ignition switches were malfunctioning back in 2004. But the automaker didn't issue a recall until a decade later. Some deaths and injuries could have been avoided had the recall been issued sooner.

Attorney Kenneth Feinberg, who devised compensation plans for victims after 9/11 and the BP oil spill, issued the details at a press conference Monday, about four months after GM recalled the affected vehicles. He was hired by GM in April as a consultant.

To illustrate how his plan would be implemented, Feinberg offered some examples. He said the family of a married 25-year-old who had two children and was earning $46,400 would receive a total award of $4 million under his protocol.

 

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KSFY. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service or our EEO Report.