Proposed Settlement in GM Ignition Switch Lawsuit Could Mean $1.14 Billion Payout for Car Owners Who Bought Their Defective GM Cars before July 10, 2009

If approved by the Bankruptcy Court, settlement could trigger 30 million share payout from GM

A proposed settlement in the General Motors ignition switch lawsuit could trigger GM's obligation to transfer 30 million shares to the bankruptcy Trust, adding over $1 billion to a settlement fund to pay economic loss and injury claims brought by owners of GM vehicles affected by a barrage of safety defects, according to Hagens Berman.

Attorneys representing owners of affected GM vehicles announced the proposed settlement with the General Unsecured Creditors Trust (GUC Trust) in the Bankruptcy Court today, which would lead to a multi-step process, if approved by the Bankruptcy Court: read more »

Ex-VW CEO Winterkorn Charged by U.S. in Diesel-Cheating Case

Volkswagen AG’s former Chief Executive Officer Martin Winterkorn was charged in a Michigan federal court with conspiracy and wire fraud in relation to a probe into the German automaker’s efforts to cheat U.S. diesel emissions testing, according to an indictment unsealed Thursday.

Winterkorn, who stepped down from his role as CEO days after the scandal was revealed, is accused of conspiring to defraud the U.S. and to violate the Clean Air Act. The charges were filed under seal in Detroit on March 14.

“The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company,” Attorney General Jeff Sessions said in a written statement. “These are serious allegations, and we will prosecute this case to the fullest extent of the law.” read more »