GM’s ignition victims fund to compensate on a large basis image

According to one of the lawyers that has sued GM over deaths and injuries linked to the defective ignition switches, the company’s victims fund, managed by Kenneth Feinberg could offer uncapped compensations.

Attorney Bob Hilliard, who said he spoke to Feinberg, which was given full authority by GM to create the fund, the company could move to compensate all drivers, passengers and bystanders that were hurt or killed in accidents that were caused or related to the faulty switch – even if the driver had been drinking or the automaker thinks it could block such claims in court.

“Feinberg wants to settle all eligible claims,” said Hilliard. The fund would be used for all ignition-switch collisions “where the airbag didn’t deploy.”

General Motors hired Feinberg, well known for his implication in the funds set up to compensate the victims of the September 11 terrorist attack or the 2010 BP oil spill, to oversee its own compensation fund, which is scheduled to release all details surrounding it later on today.

GM back in February started a recall that would encompass 2.6 million cars – mostly Chevrolet Cobalts and Saturn Ions – equipped with a defective ignition switch that was linked so far to more than 54 accidents and 13 deaths – although many reports claim the victims toll is gravely underestimated.

Via Bloomberg