GM Ignition Switch Update

General Motors will be compensating families of at least 84 people killed in crashes related to their defective ignition switch, according to the AP. As we’ve reported previously, GM knew about the problem for over a decade before it finally recalled the cars with the switches. In addition, 157 injured people are eligible for compensation. The AP says:

The fund received a total of 4,342 claims by the January 31 deadline. Of those, 1,136 are still under review. Feinberg says more than half are ineligible or lack documentation.

The company claims to have repaired 70% of the defective ignition switches, after it recalled almost 2.3 million small cars, reports The Consumerist. Currently, federal law does not allow new cars with recalls to be sold, although it allows used cars with recalls to be sold. GM has created efforts to ensure that faulty cars are not being sold, but recent reports show that some dealers continue to sell them without making any fixes.

In March, the Wall Street Journal reported on a suit by the family of a victim, also noting that documents produced for the case showed GM engaged in a cover-up and fraud related to the switch. GM still faces a probe from the U.S. Justice Department.

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