General Motors Corp.’s hiring of noted claims attorney Kenneth Feinberg has raised the possibility that it might set up a fund to compensate victims of accidents linked to its recent recalls, but the announcement, made by CEO Mary Barra during testimony before Congress, has done little to placate the plaintiffs’ bar, the National Law Journal reported today. Prominent litigators said that Barra was evasive and provided little new information about GM’s handling of ignition switch defects that prompted recalls of 2.6 million vehicles. Although she had already apologized for the recalls, Barra’s House and Senate committee testimony on Tuesday and Wednesday marked the first time the company publicly addressed GM’s potential legal liability for defects that, according to lawsuits, the company had known about for the past decade. Under a provision of its bankruptcy, GM was absolved of liability for accidents that occurred before its 2009 filing. But several prominent consumer groups led by Public Citizen called on GM to waive that shield and establish a trust fund for victims of the defects, according to a letter they sent on Tuesday to Barra.
