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General Motors hires lawyer who handled 9/11 and Boston bombing to advise on compensation for faulty switches

General Motors has hired a lawyer who handled compensation for victims of September 11 and the Boston bombing to address victims of faulty switches.

General Motors CEO Mary Barra testifies before the full House Energy and Commerce.
General Motors CEO Mary Barra testifies before the full House Energy and Commerce.

GENERAL Motors said Tuesday it had hired a lawyer who handled September 11 victim compensation to study how it should address victims of accidents tied to faulty ignitions in its cars.

GM chief executive Mary Barra said Kenneth Feinberg, who has also dealt with compensation in the BP oil spill and Boston marathon bombing, would “explore and evaluate options” for its response.

The US car giant has acknowledged more than 30 accidents in which safety airbags did not deploy, apparently because of the ignition problem, and 13 deaths.

The independent Center for Auto Safety says it has tracked 303 accidents in which GM cars were involved and in which the airbags did not inflate.

General Motors CEO Mary Barra testifies before the full House Energy and Commerce.
General Motors CEO Mary Barra testifies before the full House Energy and Commerce.

The company is under federal investigation for not having acted on the ignition problem until last month, despite knowing of the risks involved for a decade or more.

Since February, the automaker has recalled 2.4 million cars to fix the problem. GM is also facing lawsuits in the case, though analysts say that its 2008 bankruptcy and restructuring in government hands erased its liability for past problems.

“Mr. Feinberg is highly qualified, and is very experienced in the handling of matters such as this,” GM chief executive Mary Barra said.

“He brings expertise and objectivity to this effort, and will help us evaluate the situation and recommend the best path forward.” Feinberg, of the Washington law firm of Feinberg Rozen LLP, is an specialist in victim claims and payouts, with experience in a number of medical liability lawsuits as well as civil disasters Barra announced the recruitment of Feinberg during a congressional hearing where she faced thought questions about GM's handling of the ignitions problem.

Original URL: https://www.news.com.au/finance/business/general-motors-hires-lawyer-who-handled-911-and-boston-bombing-to-advise-on-compensation-for-faulty-switches/news-story/5cc4ea138634a0f93ca2330a6cb40e5d