After years of legal proceedings, a significant step has been made toward compensating car buyers affected by an engine defect in vehicles sold by General Motors (GM). A California federal judge has granted preliminary approval for a $150 million settlement between GM and consumers. Additionally, an Oklahoma federal judge approved a parallel $25 million settlement. These decisions are based on a 2022 jury verdict that held GM accountable for breaching warranties and violating consumer protection laws.
The lawsuits were initiated in 2016, accusing GM of selling cars with known engine defects that were not disclosed to the buyers, resulting in performance issues. In 2022, a jury awarded $102.6 million in damages to the affected consumers. GM's attempts to overturn this verdict were unsuccessful due to what the court described as an “all-or-nothing” trial strategy.
Settlement discussions commenced in December 2024 and progressed into early 2025, leading to agreements on all class actions related to the defective engines by April. U.S. District Judge Edward M. Chen characterized the settlement as “fair, adequate, and reasonable,” suggesting minor changes to improve clarity in class notices. Similarly, Oklahoma Federal Judge Gerald Jackson reached the same conclusion a week earlier.
This settlement is anticipated to benefit approximately 38,000 car owners across California, Idaho, Oklahoma, and North Carolina. Eligible class members might receive around $4,500 each before deductions for legal fees and administrative costs. The courts stressed clear communication regarding this potential recovery through notices sent out using DMV records for accuracy.
Beasley Allen law firm emphasized its dedication to advocating for consumer rights against large corporations like GM: "We have a deep understanding of the automotive industry and are unwavering in our resolve." The firm pledged continued efforts to ensure justice for their clients.