Ken Feinburg announced GM’s compensation fund on June 30. The fund set up by GM to compensate victims of its defective ignition switch falls far short of providing complete justice for the automaker’s hundreds of victims. While we appreciate the hard work of the plan administrator and acknowledge the compensation fund is on the right track in two areas:
But we have some substantive and well-founded concerns about the plan. For example, we do not believe the compensation fund is fair for the vast majority of GM’s victims. The Feinberg plan falls far short of the requirements for an adequate compensation plan. Some objections to the plan include:
We have consistently stated that we favor a compensation plan and have no objection to Mr. Feinberg being the administrator. But I firmly believe that, in order for the plan to really work, there must be court supervision. That is our proposal as an amendment to the Feinberg plan, along with the need for increases in the amounts to be paid, an expansion of the criteria for eligible claims and a clarification of the burden of proof. Our co-counsel in the GM litigation, Lance Cooper, and Cole Portis from our firm, were given advance notice of the details of the plan, but we couldn’t reveal anything until Feinberg announced it. Lance has had numerous discussions with Feinberg about the plan. Hopefully, the fund won’t be used to coerce victims’ families to settle their claims too cheaply. Ms. Barra has made several statements that indicate the threat of the bankruptcy court order will be used to force victims’ families into the compensation fund. That shouldn’t be allowed to happen.
Source: Claims Journal
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