by GM agrees to $150 million settlement over engine issues
Automaker General Motors has agreed to pay $150 million to settle a class action lawsuit related to 5.3-liter LC9 V8 engines. The main allegations concerned defective piston rings and assemblies, which led to excessive oil consumption, damaged spark plugs, and other problems.
Only owners who purchased or leased vehicles in California, North Carolina, or Idaho will receive compensation. The lawyers who represented the plaintiffs will receive $57 million, while each of the three lead plaintiffs will get $30,000.
Who can claim payments?
The list of models covered by the lawsuit includes the Chevrolet Avalanche, Suburban, Tahoe, Silverado, as well as the GMC Yukon and Yukon XL from model years 2011–2014. Owners who have already repaired their engines under warranty will not receive compensation. Each claimant is expected to receive approximately $2,149.
Separately, a similar lawsuit was settled in Oklahoma, where compensation amounted to only $700 per owner, and the lawyers received $9.5 million. These cases once again highlight how profitable class action lawsuits can be for law firms.
Despite the large-scale payments, GM continues to deny the allegations regarding engine defects. However, the company decided to avoid a lengthy trial that could damage its reputation. At the same time, for car owners, this is an opportunity to receive at least partial reimbursement for repair costs.
