by Court Approves Multi-Million Dollar Payouts
A federal judge in California has just approved a $57 million payment for the attorneys who represented the plaintiffs in a class action lawsuit against General Motors. While the lawyers will receive the largest portion of the sum, the affected owners will also receive compensation, although their share is significantly smaller.
Settlement Details
The class action lawsuit, which received preliminary approval earlier this year, concluded this month when District Judge Edward M. Chen granted final approval. This decision allows GM to pay $150 million to settle claims related to vehicles equipped with the faulty 5.3-liter V8 LC9 engine.
Owners claimed that the Vortec engine’s piston rings were defective, causing excessive oil consumption that could lead to serious engine damage.
The lawsuit also stated that the V8 engines had problems with fouled spark plugs, leading to rough idling and slow acceleration. Furthermore, the plaintiffs alleged that GM knew about these problems but chose not to disclose them.
Models included in the lawsuit are the 2011–2014 Chevrolet Avalanche, Silverado, Suburban, Tahoe, GMC Sierra, GMC Yukon, and GMC Yukon XL.
Compensation Distribution
According to the terms of the settlement, each of the claimants in California, Idaho, and North Carolina will receive an average of $3,380. This amount is higher than the initial proposal of $2,149 put forward in July.
Additionally, the three plaintiffs who filed the original class action lawsuit – Garrett Tarvin, Gabriel Del Valle, and William Davis Jr. – will receive $30,000 each.
Nearly 43,000 individuals joined the lawsuit. In North Carolina, class members had to purchase or lease an eligible GM vehicle by May 23, 2022. In California, those eligible for compensation are those who purchased or leased a new vehicle as of the same date. For residents of Idaho, those eligible to participate are those who purchased or leased a vehicle from a GM dealer by May 23, 2022.
Other Similar Cases
This is not the only lawsuit GM has settled. The court also approved a deal for owners from Oklahoma who participated in a separate class action lawsuit concerning the same issues with the 5.3-liter V8 engine. In this case, the attorneys will receive $9,436,540, the plaintiff will receive $15,000, and each affected owner will receive approximately $700.
These settlements raise questions about the fairness of the compensation distribution between lawyers and affected owners. While owners receive monetary payments, the amounts allocated to attorneys significantly exceed their compensations. Such cases may influence future class action lawsuits, including the motivation for lawyers to take on such cases and client expectations regarding the outcomes.
