GM’s Ignition Switch Recall – Another Fund, or Litigation?
Which direction will GM take for its ignition switch failures – a compensation fund or litigation? Relevant considerations include the outcome of the ongoing internal investigation undertaken by Anton Valukas, reputation risk, costs, insurance (or self-insurance), and the terms of GM’s prior race through a farcical chapter 11 proceeding. News stories this week arise from Senate hearings. The events include GM hiring Ken Feinberg to provide his thoughts, and HarrisMartin scheduling a May 28, 2014 litigation seminar regarding the switch failures.
Many things move fast these days. Litigation typically does not. My bet is against GM Letting this fester for years.