Defect Deal: $175 Million GM Settlement Gets Preliminary Approval

After years of legal battles, car buyers are one step closer to receiving compensation. A California federal judge has granted preliminary approval for a $150 million settlement between General Motors (GM) and consumers who purchased vehicles with a hidden engine defect, and an Oklahoma federal Judge did the same for an identical $25 million settlement. These decisions follow a 2022 jury verdict that found GM liable for breaching warranties and violating consumer protection laws.

Background & Resolution

The class action lawsuits, filed in 2016, accused GM of knowingly selling vehicles with defective engines. The defect, which was not disclosed to buyers, led to significant performance issues. In 2022, a jury awarded $102.6 million in damages to affected consumers. GM attempted to overturn the verdict, but the court rejected its arguments, citing the company’s “all-or-nothing” trial strategy.

Settlement discussions began in December 2024 and gained momentum through early 2025. By April, both sides had reached an agreement on all class actions regarding the defective engines. During a recent hearing, U.S. District Judge Edward M. Chen described the settlement as “fair, adequate, and reasonable,” while requesting minor revisions to the class notice to improve clarity. Oklahoma Federal Judge Gerald Jackson made the same finding just a week earlier.

What the Settlement Means for You

The $175 million settlement is expected to benefit around 38,000 car owners in California, Idaho, Oklahoma and North Carolina. Each eligible class member could receive approximately $4,500 before deductions for legal fees and administrative costs. The courts emphasized the importance of clearly communicating this potential recovery in notices sent to class members. DMV records will be used to ensure accurate and timely delivery of these notices.

Representation Matters

At Beasley Allen, we take pride in our commitment to advocating for consumers’ rights and holding major corporations accountable. Our dedicated team combines a meticulous approach with a passion for justice, resulting in numerous successful outcomes for our clients.

We have a deep understanding of the automotive industry and are unwavering in our resolve to support those who stand up against powerful entities like GM. Our mission is to ensure that your voice is heard, and your rights are protected. Stay tuned for more updates as we continue to navigate these cases and fight to hold these car manufacturers responsible!