General Motors has struck a $120 million agreement with owners who claimed that their automobiles lost value due to faulty ignition switches, which have been linked to 124 deaths.
The preliminary agreement was lodged Friday evening with the federal court in Manhattan and needed approval by U.S. District Judge Jesse Furman. It would resolve the last major piece of litigation stemming from ignition switches that would cause GM automobiles to stall and prevent airbags from deploying.
GM has recalled over 2.6 million autos since 2014 over the switches, covering autos dating back over a decade earlier. It has paid over $2.6 billion in penalties and settlements, along with $900 million to settle a U.S. Division of Justice criminal case.
Friday’s agreement resolves claims by owners who stated they suffered economic losses from buying automobiles they thought were defect-free, only to see the ignition change problem harm GM’s brand, reputation, and resale values.
GM will contribute as much as $70 million toward the agreement, whereas a belief set up in connection with the Detroit-based auto manufacturer’s 2009 bankruptcy will add $50 million.
Besides, GM will pay up to $34.5 million to cover authorized charges and bills of the owners’ lawyers.
Before Friday’s settlement, GM had resolved or obtained dismissals of most of the over 3,000 private injury and wrongful demise claims overseen by Furman.