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GM compensation bill could rise to US$8b
Massive compensation bills in the banking and oil sector are now looking likely to be followed up by a multi-billion bill for General Motors which is now attempting to resolve its ignition switch problems.
Massive compensation bills in the banking and oil sector are now looking likely to be followed up by a multi-billion bill for GM. Linda Parton
US senator Richard Blumenthal has asked the company to put US$8b into its reserves for compensation - while Barclays analyst Brian Johnson has estimated that the company could pay US$3b. The company is currently facing over 100 lawsuits in relation to the issue which is known to have led to at least 13 deaths. Plaintiff lawyers, however, suggest that more than 60 people may have died because of the ignition problem.
All eligible claims
Independent lawyer Ken Feinberg is handling the compensation scheme. He told Bloomberg: ‘GM will pay all eligible claims. If you already settled a case before you knew of the switch defect and signed a release, you can come back and get more compensation.’ But compensation will only be given through this scheme in exchange for the claimant agreeing not to sue. Source: Business Week
