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Texas Set to Receive $7.35 Million from General Motors Settlement

General Motors

Many of our readers will remember millions of General Motors (GM) vehicles being recalled in 2014 due to faulty switches. Attorneys from 49 states and the District of Columbia alleged that GM hid safety issues related to the faulty switches, which has resulted in a settlement of $120 million. Texas is set to receive $7.35 million from the GM settlement, with the remainder being split among other states.

General Motors Recall

In 2014, GM recalled millions of vehicles after defective ignition switches were found to cause serious safety problems. The faulty switches were said to be capable of rotating from the run position to accessory or off. When this happened, power was cut to important safety features like airbags, as well as power steering and brakes.

The multi-state allegations claimed that GM knew about the potentially dangerous defect as early as 2004, but did nothing until the recall ten years later in 2014. During the course of those ten years, vehicles known to be outfitted with the defective part were marketed as being reliable and safe.

Texas Attorney General Ken Paxton stated that the $7.35 million settlement will help hold GM “accountable for the danger posed to Texans by (the company’s) defective switches”. GM will now be required to repair recalled vehicles before they can be resold as “certified preowned” by dealers.

Dangerous Defects Harm Innocent Consumers

In total, the impact of the defective ignition switches affected millions of lives around the United States. Over 120 deaths have been linked to the defective ignition switches, along with more than 275 injuries. There are currently hundreds of pending lawsuits filed against GM by victims and their loved ones. Earlier this year, the U.S. Supreme Court ruled that GM could not avoid these lawsuits, including those filed prior to 2009 when the company filed for bankruptcy.

This most recent settlement is connected to allegations that GM violated consumer protection laws. So far, GM has paid settlements and penalties topping an estimated $2.5 billion. Of that, $900 million was tied to a U.S. Department of Justice criminal case.

Consumer Protection Laws and Your Rights

Whether you are purchasing a new vehicle, toys for your children, or medication from your local pharmacy – as a consumer, you have certain rights. When manufacturers or retailers sell defective or dangerous products, your rights may have been violated. If you have been harmed by a dangerous or defective product – no matter how big or small – contact Daic Law to speak with our consumer protection attorney about your legal rights.

Call Daic Law today at (713) 808-5246, or email us at

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