P&A Providers & Administrators
MenuMENU
SearchSEARCH

GM Gets Deadline Flurry of Compensation Claims

February 3, 2015
3 min to read


The Jan. 31 deadline for claims to General Motors’ victim compensation fund spurred a flurry of 1,100 new filings, reported The Detroit Bureau.


The rush brought the total number of filings to 4,180, including 455 death benefits: an increase from 338 the week prior. Claims for the most severe injuries rose to 278, up from 224 a week earlier, and filings for less severe injuries jumped to 3,447 from 2,508 a week earlier.

Ad Loading...


The fund is administered by Kenneth Feinberg, an attorney whose firm oversaw similar funds related to the BP oil spill and other issues, who said in a radio interview yesterday that he expects the total number of filings to rise a bit more because any claims post marked for Jan. 31 will be accepted.


Last week, two U.S. Senators – Richard Blumenthal (D-Conn.) and Edward Markey (D-Mass.) – asked GM to extend the deadline because they believed the claimants did not have enough information to make a decision on whether or not to file. The automaker declined. It would have been the second extension of the deadline as Feinberg convinced the company to extend the original Dec. 31 deadline by a month.


Feinberg said he believed the second extension was unnecessary and if someone didn’t know about about the deadline they were “living under a rock.” Georgia attorney Lance Cooper, whose firm submitted 45 claims to the fund, including 20 for deaths, told the Detroit News he felt the number of lawsuits agains the automaker would rise because the of the failure to extend the deadline. Cooper believes potential claimants should have had a year to file.


The lawsuits may come anyway. The U.S. Bankruptcy Court is considering allowing suits to be filed against the automaker, which was formed out of bankruptcy, despite the new company’s liability shield. The company is not using the shield against those who filed claims with the fund.


Thus far, Feinberg and his team have approved death benefits for 51 people, which is up from the initial 13 deaths attributed to the problem. There also have been eight claims for serious injuries approved and 69 for lesser injuries. The amount of the benefit varies upon the circumstances, but each death benefit recipient receives at least $1 million.

Ad Loading...


The fund, which could pay out as much as $600 million, was established by GM last year for victims and their families who were killed or injured as a result of the company’s faulty ignition switches. The switches could toggle out of the “run” mode in to “accessory” mode cutting off the vehicle’s power steering and brakes as well as shutting off its airbags.


Ultimately, GM recalled nearly 2.6 million of the vehicles – some of which were a decade old – last year and made multiple appearances before Congressional committees and is subject to a variety of lawsuits as well as an investigation by the Justice Department.


A federal bankruptcy court is deciding whether to let claims proceed. General Motors Co., which was formed in a government-sponsored sale of assets from its predecessor’s 2009 bankruptcy reorganization, has said it will not invoke its bankruptcy liability shield in the case of injuries or deaths to avoid paying claims, but is fighting other claims made by owners of vehicles for economic losses.


A hearing is set for Feb. 17 in U.S. Bankruptcy Court in New York on the issue. If GM wins, victims of crashes before the restructuring likely could not sue GM.


More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →