Judge Rejects GM Ignition Switch Deal for Car Owners
Jan. 22, 2018—A U.S. Bankruptcy Court judge in New York has thrown out a settlement agreement that could have triggered a payment of $1 billion of General Motors stock to owners of cars with defective ignition switches, the Detroit Free Press reports.
The case is tied to GM's 2014 recall of 2.6 million vehicles with defective ignition switches, including one linked to 124 deaths. A GM spokesman declined to comment on the ruling.
GM has paid about $2.5 billion to settle other claims linked to the defective ignition switches, including a $900 million payment to settle a criminal investigation by the U.S. Department of Justice.