Two class-action lawsuits reach their ends with owners getting compensation…and lawyers getting much more.
Over the past several years (eight years in one case), customers have been engaged in class actions against General Motors concerning oil consumption for 2011-2014 trucks and SUVs with the automakers 5.3-liter LC9 Vortec 5300 engines. These engines are found in the Chevrolet Silverado, Avalanche, Tahoe and Suburban, as well as the GMC Sierra, Yukon and Yukon XL. Owners in both cases complained that their engines failed due to defective piston rings — one case concerns several owners in Oklahoma, while the other includes those in California, Idaho and North Carolina.
Word of the settlements first emerged from Car Complaints.
Plaintiffs involved with the larger, three-state settlement alleged damaged spark plugs would cause idling and acceleration problems. The case contended General Motors knew about these issues with the LC9 engine, but concealed the defects from the public, even knowing the vehicles would eventually suffer serious mechanical problems. This lawsuit against GM was initially dismissed back in 2017, but the judge allowed the plaintiffs to modify and refile their claims a total of eight times over the past eight years.
The larger settlement, totaling more than $57 million, was reduced in scope from a nationwide settlement to just three states as a result. And the smaller settlement, at over $9.4 million, only concerns customers in Oklahoma, including the owner who originally brought the case. Law firm Beasley, Allen, Crow, Methvin, Portiles & Miles, P.C., and DiCello Levitt LLP represented both cases, and as such will see payouts totaling nearly $66 million.
What will owners get out of this settlement?
Customers in the three-state lawsuit (California, Idaho and North Carolina) will be compensated to the tune of $3,380 each. The three customers who brought the class-action, specifically, will each get $30,000. However, certain conditions apply to be able to file a claim: Only owners or lessees who owned their 2011-2014 vehicles from the models listed above as of May 23, 2022. For California customers, you must have bought the vehicle new, so only original owners can file claims. In Idaho and North Carolina, customers must have bought the vehicles directly from a GM dealer prior to May 23, 2022 (though they don’t carry the “new” stipulation).
In the Oklahoma case, the owner who brought the settlement will receive $15,000 in compensation. Other 5.3L Vortec claimants in the state will receive just $700 from the settlement.
Pragmatically, “something is better than nothing” perhaps best sums up these lawsuits from the customers’ prospective. That said, GM settling for over $66 million while customers don’t even see one-half of 1% of that amount is, frankly, insane — even taking legal costs into account.
GM is still facing lawsuits over engine problems, this time with the L87
To-date, General Motors has denied any wrongdoing with its Vortec engines, even while settling these class-action cases. In the modern context, it is still dealing with major engine concerns. This time around, though, it concerns the newer 6.2-liter L87 “EcoTec3” V8, which is also under legal scrutiny and investigations from the NHTSA for widespread failures.
