GM could benefit, too, from an ignition-switch victims fund - chicagotribune.com

GM could benefit, too, from an ignition-switch victims fund - chicagotribune.com:

by Jessica Dye

(Reuters) - If General Motors Co creates a fund to compensate victims of its faulty ignition switches, an option that a top legal adviser suggested it is exploring, the company could give up strong defenses to a wave of lawsuits. But it could stand to gain even more.

By setting up a fund, GM could avert years of civil litigation and limit its financial and reputational harm.

GM has retained Kenneth Feinberg, a Washington lawyer who has overseen compensation funds for victims of high-profile catastrophes like the BP Plc oil spill and the September 11, 2001, attacks.

Feinberg told CNBC on Wednesday that GM is "asking me to help develop some sort of program that might be used to compensate eligible claimants."

Feinberg did not return a request for comment. A spokesman for GM, Jim Cain, said Feinberg is "highly respected for his handling of compensation issues, and we've hired him to explore and evaluate all options." That work is ongoing, and no decisions have been made, Cain said.



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