Lawyers Walk Away With $57M While GM Owners Get Peanuts In V8 Lawsuit
- GM settled a class action over LC9 V8 engine issues with a $150 million payout.
- The lawsuit claimed that the LC9 V8 has defective piston rings and assemblies.
- Only buyers in California, North Carolina, and Idaho qualify for settlement benefits.
A long-running legal dispute over oil consumption in certain GM engines has finally reached a resolution, offering payouts to affected vehicle owners, though (perhaps unsurprisingly) the largest checks won’t be going to them.
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Read: GM Sued Over Trucks That Allegedly Let Thieves Walk Right In
The automaker has agreed to pay $150 million to settle a class action lawsuit centered on its 5.3-liter LC9 V8 engine. While owners will receive compensation, it’s the lawyers in the case who are really reaping the rewards, as they’re set to walk away with an astronomical $57 million.
The case was brought forward by Garrett Tarvin, Gabriel Del Valle, and William Davis Jr., who alleged that GM’s LC9 V8, commonly known as the 5.3-liter Vortec, suffered from defective piston rings and assemblies. According to the complaint, these flaws led to excessive oil consumption, which in turn caused issues like damaged spark plugs, rough idling, acceleration problems, and in some cases, total engine failure.
Who Qualifies for Compensation?
While GM has always denied wrongdoing and liability, it is settling the case. The resolution is only for current owners or lessees of an impacted vehicle that was purchased or leased in California, North Carolina, or Idaho. For those in California, the vehicle must have been new, and for class members in North Carolina, it must have been purchased or leased through a GM-authorized dealership.
The lawsuit involves 2011-2014 Chevrolet Avalanche, Silverado, Suburban, Tahoe, GMC Sierra, GMC Yukon, and GMC Yukon XL models. Owners of vehicles that have already had upgraded piston rings installed under warranty are not eligible for any compensation.
How Much Are Owners Getting?
It’s estimated that each eligible class member will receive at least $2,149 through the settlement. In addition, each of the three plaintiffs will receive $30,000. As mentioned, the lawyers representing the class action are set to receive $57 million. If you want to understand why so many law firms are so invested in class action lawsuits, that’s your answer right there.
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Another Lawsuit, Another State
Interestingly, a separate class action lawsuit also alleging issues with the LC9 engine was preliminarily approved in mid-June, exclusively in Oklahoma. In that case, the owner behind the lawsuit will receive $15,000, the lawyers will get $9.5 million, and the impacted owners will each receive roughly $700.
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