(Bloomberg) — General Motors Co. paid less than $600 million to settle claims by victims of its flawed ignition switches, a slightly smaller sum than what the automaker told investors it expected to pay, after a 20-month-long compensation process led by Kenneth Feinberg.
A final report released by Feinberg on Thursday concluded 124 people died in relation to ignition switches in GM compact cars, and another 275 suffered injuries warranting compensation. The Feinberg-led firm said GM paid out on less than 10% of 4,343 claims submitted, for a total of $594 million in settlements.
Chief Executive Officer Mary Barra set up the compensation fund to deal with litigation from the company's customers, many of whom bought Chevrolet Cobalts and other compact cars before the automaker's 2009 bankruptcy. Since GM shed product liabilities through its reorganization, the company was shielded from such claims and may not have had to pay victims.
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