GM agrees to $150 million settlement over engine defects in class action lawsuit

GM agrees to $150 million settlement over engine defects in class action lawsuit
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Tom Methvin, Principal, Managing Attorney | Beasley Allen, law firm, GA

A federal judge in California has given final approval to a $150 million class action settlement involving General Motors LLC (GM) and thousands of car owners affected by defective engines. The case, Siqueiros v. General Motors LLC, began in 2016 and centered on allegations that GM knowingly sold vehicles with Generation IV 5.3L V8 LC9 engines prone to excessive oil consumption and premature engine failure. These engines were installed in popular models such as the Chevrolet Silverado, Tahoe, Suburban, and GMC Yukon.

The plaintiffs were represented by Beasley Allen Law Firm and its co-counsel. After years of litigation, including a full jury trial, the court determined that GM had breached warranties and violated consumer protection laws. The jury awarded over $100 million in damages, with GM facing potential liability exceeding $200 million after adding prejudgment interest.

U.S. District Judge Edward M. Chen approved the settlement on October 10, 2025. The agreement provides direct cash payments to eligible class members in California, Idaho, and North Carolina, averaging more than $3,300 per vehicle—an amount 22% higher than the original jury award. In addition, the settlement includes $57 million for attorneys’ fees and expenses.

Judge Chen noted that the 37% fee award was above the Ninth Circuit’s usual 25% benchmark but found it justified due to the “extraordinary” performance of class counsel. The settlement was achieved after extensive litigation and resulted in a recovery approximately $50 million greater than the jury’s verdict.

At the final approval hearing, class counsel—including Clay Barnett from Beasley Allen—stated: “Awarding an exceptional fee here would encourage class lawyers to take complex consumer cases to trial and pursue full and undiscounted recoveries for the classes.” The court agreed, observing that the post-trial settlement represented 122% of the jury verdict and supported an exceptional attorney fee award.

No objections were filed among nearly 43,000 class members who received notice of the settlement.

Beasley Allen Law Firm described the outcome as an example of its ongoing efforts to hold corporations accountable for consumer harm: “The recent $150 million settlement against General Motors is just one example of our dedication to holding powerful companies accountable. In this case, our team helped thousands of vehicle owners recover compensation for engine defects—achieving a payout that exceeded the jury’s original award.”