- Owners claimed GM’s V8 burned excess oil and had faulty spark plugs.
- It’s alleged GM knew about the defects but concealed them for years.
- About 43,000 owners will each receive settlement payments of $3,380.
Today is a good day to be part of the Beasley Allen Law Firm, as a federal judge in California has just approved a remarkable $57 million payout for the attorneys involved in a class action lawsuit against General Motors.
Although the lawyers are taking home the lion’s share, the real victims, the affected owners, will also receive compensation, though their portion pales in comparison.
Settlement Finalized
The class action, which gained preliminary approval earlier this year, reached its conclusion this month when U.S. District Judge Edward M. Chen granted final approval. The ruling clears the way for GM to pay $150 million to settle claims tied to vehicles equipped with its faulty 5.3-liter LC9 V8 engine.
Read: Lawyers Walk Away With $57M While GM Owners Get Peanuts In V8 Lawsuit
Owners alleged that the Vortec engine’s piston rings were defective, causing excessive oil consumption that could potentially lead to serious engine damage.
The lawsuit also claimed the V8s suffered from fouled spark plugs, resulting in rough idling and sluggish acceleration. Adding to the controversy, plaintiffs argued that GM knew about these issues but chose not to disclose them.
Vehicles covered by the lawsuit include 2011-2014 Chevrolet Avalanche, Silverado, Suburban, Tahoe, GMC Sierra, GMC Yukon, and GMC Yukon XL models.
Who Gets What?
Through the settlement, eligible class members in California, Idaho, and North Carolina will each receive an average payout of $3,380. This is higher than the original $2,149 figure that was proposed in July.
In addition, the three plaintiffs who filed the original class action, Garrett Tarvin, Gabriel Del Valle, and William Davis Jr, will each receive $30,000.
Almost 43,000 individuals joined the class action. In North Carolina, members must have purchased or leased an eligible GM vehicle by May 23, 2022. In California, qualifying vehicles must have been bought or leased in new condition as of that same date. For Idaho residents, eligibility applies to vehicles purchased or leased from a GM dealer by May 23, 2022.
Another Case Closed
This isn’t the only lawsuit settled by GM. A judge also finalized a settlement for Oklahoma owners involved in a separate class action alleging the same issues with the 5.3-liter V8. In this case, the lawyers will receive $9,436,540, the plaintiff 15,000, and each affected owner approximately $700.
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