GM Reaches Settlement in Third Ignition Switch Lawsuit
General Motors has settled a wrongful death lawsuit days before trial, halting the third major test case over its defective ignition switches linked to hundreds of casualties.
General Motors has reached a confidential settlement with Nadia Yingling, who sued the company over the death of her husband in a 2013 crash involving a 2006 Saturn Ion. The case, which was due to begin trial on 2 May 2016, centred on the defective ignition switch that triggered a massive recall and has been linked to hundreds of deaths and injuries.
This was to be the third in a series of so-called bellwether trials testing GM’s liability for the faulty switches. The defect, which could cause the engine to shut off and disable airbags, led to the recall of 2.6 million vehicles in 2014. According to official figures, nearly 400 deaths and serious injuries have been connected to the issue.
GM has already paid approximately $2 billion in settlements and penalties related to the ignition switch problem. The company has admitted that some employees were aware of the defect for years before the recall was announced.
Outcome of previous ignition switch trials
The first trial over the ignition switch defect ended abruptly in January 2016 after allegations the plaintiff gave misleading testimony. The second trial concluded in March with a verdict in GM’s favour: jurors awarded no compensation to the plaintiffs but found the company had failed to warn the public about the risks. The Yingling case, involving a fatality rather than injuries, was expected to be more complex.
Further settlements and ongoing impact
Following the Yingling settlement, lawyers for plaintiffs dismissed what would have been the fourth trial in the series. GM continues to face litigation and regulatory scrutiny over the ignition switch defect, which has become a defining safety crisis for the company. The scale of the recall and the number of affected vehicles have placed GM’s safety culture and internal reporting under sustained examination.
For more on GM’s leadership during the aftermath of the recall, see Mary Barra Named Among Fortune’s Top Leaders Amid Detroit Recovery.
