Under the settlement, GM would pay $50 million to compensate truck owners who paid out of pocket for repairs to their engines due to the alleged defect and former owners who allegedly overpaid for their vehicles. Drivers who had to pay for repairs may see between $6,300 and $12,700, depending on the number of claimants, according to Thursday’s hearing.
Judge’s Remarks on Settlement
Judge Berg noted the potential check amount is “pretty good” for drivers, whom experts estimated paid roughly $9,500 on average for out-of-pocket repairs.
“I did also want to say that I think that this settlement seems to me to be particularly fair in the sense that often, in these class actions, by the time the dust settles, the amount of individual payment to plaintiffs who may have been damaged is often considerably below the possible damages that they might have had for many reasons,” Judge Berg said.
GM also agreed to provide a 12-month future limited warranty that covers 50% of the cost of repair or replacement if a fuel pump on a class member’s car fails during the warranty period, which begins after final approval of the settlement.
Named Plaintiffs and Attorney Fees
Under the agreement, named plaintiffs would receive a $5,000 service award to be paid by GM outside the $50 million class pot. Attorney fees have not yet been requested.
