Originally published by William K. Berenson.
No year could possibly top 2015 for its shocking news about vehicle fraud. Repeated concealments of deadly ignition switches, airbags, and guard rails showed the world’s auto manufacturers obsessive fixation on profits at the expense of its customers’ safety. And that’s ignoring Volkswagon’s deceptive manipulation of emissions data and other fiascoes.
Here are the top three worst defective products scandals of 2015.
1. G.M. Ignition Switch Defect
Three years ago, the attorney for a victim’s parents hired an engineer to figure out why a young woman had died in a bizarre accident while driving a G.M. vehicle. The engineer discovered an ignition switch flaw GM had known about since 2000 that ignited the biggest auto recall in history.
The giant automaker not only knew about the defective ignition switch but took great pains to cover up the problem. Yet G.M. continued to deny its responsibility for more than 100 deaths and hundreds of serious injuries.
The victims already faced an uphill battle to receive verdicts and settlements they deserved. Then, in a huge blow to victims and their families, a federal bankruptcy judge ruled in April that General Motors was shielded from lawsuits involving accidents that occurred before the corporation was declared bankrupt in 2009.
The injustice of this decision was obvious. The reason victims were not able to act sooner was because of G.M.’s concealment of the facts. Many of the fatal crashes occurred after G.M. executives and engineers were well aware of the defect.
Then, in another blow, criminal charges were dropped against the corporation in a deferred prosecution deal.
Fortunately, in the final days of 2015, a federal judge rejected G.M.’s motion to dismiss its first ignition switch trial, which is scheduled later this year. But yesterday, GM promoted Mary Barra, its president who was at the center of its fraud, to CEO as a thank you gift.
Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.
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