by The Chevrolet Bolt Case: The Legal Saga Concludes
The Chevrolet Bolt was meant to be General Motors’ affordable answer to the electric vehicle market challenge, tasked with bringing ordinary drivers into the electric era. Instead, it turned into a cautionary tale, as it was plagued by numerous battery-related recalls and a series of fire risks that tarnished its reputation before it could realize its full potential.
The Settlement Terms
GM has finally reached a settlement in the massive class-action lawsuit regarding Bolt issues, but the true beneficiaries are not necessarily the people who bought the car and sued the manufacturer. Several class-action lawsuits were filed against GM after the National Highway Traffic Safety Administration (NHTSA) opened an investigation into reports of Bolt battery fires in late 2020. A judge eventually consolidated these lawsuits into one class action, which has now received final approval for settlement.
Who Gets What
The settlement, initially announced in 2024, stipulates that owners of eligible Bolt models who did not participate in GM’s 2023 compensation program (which offered a $1,400 Visa eRewards card) will now receive the same amount. Additionally, former owners or lessees who were eligible for a software update from Chevy but sold their car or ended their lease before June 13, 2023, will be entitled to $700.
Each of the 31 named plaintiffs in the consolidated class action will receive $2,000. In terms of class-action lawsuit settlements, especially those involving such serious defects, the payout seems very small. That is until you consider what the lawyers will get.
Legal Costs Overshadow Customer Payouts
The attorneys representing the plaintiffs will receive a hefty $52.5 million for their work on the case. One might assume some of them will be tempted to spend this money on a lavish New Year’s celebration, or perhaps the firm’s leadership will pay significant bonuses to the lawyers involved in the case.
Wherever this money goes, it’s unfortunate that only $62,000 will go to GM customers who were directly affected by the Bolt battery issues.
This case clearly illustrates how class-action mechanisms, designed to protect consumers, can often result in significantly greater benefits for the legal system than for the victims themselves. Despite the company’s multi-million dollar settlement costs, the end owners of the defective vehicles receive symbolic compensation, raising questions about the effectiveness of this tool for protecting rights. The Bolt situation remains an important precedent for the entire automotive industry, especially against the backdrop of the rapid transition to electric vehicles, where the reliability of battery systems is critical.
