Compensation Fund For Defect Victims May Pay Off For GM

Law360, New York (March 25, 2014, 9:23 PM EDT) -- Though unheard of in the automotive industry, a U.S. senator's proposal to establish a fund for victims of General Motors Co.'s ignition switch defect could shield the company from the type of protracted litigation and embarrassing discovery that plagued Toyota Motor Corp.'s unintended acceleration recall and ultimately contributed to its $1.2 billion criminal penalty, attorneys say.

U.S. Sen. Richard Blumenthal, D-Conn., asked prosecutors Monday to require GM to set up a victims’ compensation fund while their criminal probe into the automaker’s recall last month of 1.6...
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