The Road to Justice: $150 Million GM Engine Defect Settlement Approved

In a major win for car owners, a California federal judge has granted final approval to a $150 million class action settlement against General Motors LLC (GM) over defective engines that caused excessive oil consumption and premature engine failure. The case, Siqueiros v. General Motors LLC, has been closely watched since its filing in 2016, and this landmark decision delivers long-awaited justice to thousands of affected drivers.

The Lawsuit

The plaintiffs—represented by Beasley Allen Law Firm and co-counsel—alleged that GM knowingly sold vehicles equipped with defective Generation IV 5.3L V8 LC9 engines. These engines, found in popular models like the Chevrolet Silverado, Tahoe, Suburban, and GMC Yukon, suffered from premature piston ring failure that led to excessive oil consumption, engine damage, and costly repairs.

After years of litigation and a full jury trial, the court found GM had breached warranties and violated consumer protection laws. The jury awarded over $100 million in damages, and with prejudgment interest, GM faced potential liability exceeding $200 million.

What Does the Settlement Mean for Consumers?

U.S. District Judge Edward M. Chen approved the $150 million settlement, which includes:

• Direct cash payments to eligible class members in California, Idaho, and North Carolina
• An average payout of over $3,300 per vehicle—22% higher than the jury’s original award
• A $57 million award in attorneys’ fees and expenses, reflecting the extraordinary effort and risk taken by class counsel

Importantly, out of nearly 43,000 class members who received notice, not a single objection was filed—a rare and powerful endorsement of the settlement’s fairness.

Why the Fee Award Matters

Judge Chen acknowledged that the 37% fee award materially exceeded the Ninth Circuit’s typical 25% fee benchmark, but emphasized that it was deserved as the litigation performance was “extraordinary”. The settlement was reached post-trial, after full litigation and risk, and resulted in a recovery of roughly $50 million greater than the jury’s verdict.

At the final approval hearing, Class counsel, including Beasley Allen’s Clay Barnett, argued that 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, noting that Beasley Allen and the co-counsel’s post-trial settlement valued at 122% of the jury verdict, supported an exceptional attorney fee award.

Our Commitment to Consumer Justice

Beasley Allen Law Firm has a long-standing reputation for standing up to corporate wrongdoing and securing justice for everyday consumers. 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.

If you believe you’ve been affected by a defective product or unfair business practice, contact our team today for a free consultation.