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GM to Compensate Victims of Recalls

Bill Pugliano, Getty Images

General Motors is expected to announce plans to compensate victims of a recall from a defect that led to at least 13 deaths and over 50 crashes.

According to WNEM, the announcement in which GM victims will find out how much their payout will be, is expected in Washington D.C. GM CEO Marry Barra said has said there will not be a cap on the payments in which a faulty ignition switch could lead to an engine stall which would then shut off the power steering and brakes.

The AP reports that the actual numbers from the ignition defect could be much higher than what is being reported with a death toll closer to 100 and hundreds of injuries. If this is the case, GM could be paying out millions of dollars, if not more.

Compensation expert Kenneth Feinberg, who will make the announcement, says that in order for victims to receive payment, they would have to agree not to sue the GM. Feinberg says the automaker also has a way to determine if the faulty switch caused an accident. Claims will taken starting August 1st.

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