More than 90 percent of the claims submitted for compensation related to General Motors Co.'s faulty ignition switches were rejected by lawyers hired to handle the claims, Dow Jones Daily Bankruptcy Review reported today. As of Friday, the compensation fund led by lawyer Kenneth Feinberg had processed all 4,343 claims and determined that only 399 were eligible for compensation. Those included 124 claims involving deaths and 17 involving paralyzation, double amputation, brain damage or pervasive burns. Another 258 claims were approved for injuries requiring hospitalization within 48 hours of the accident. GM recalled 2.6 million older vehicle last year over a defective switch that could move out of the run position, shutting off key safety features and threatening the lives of occupants. The defect has been linked to more than 100 deaths. The U.S. Justice Department is unlikely to charge General Motors Co. with bankruptcy fraud, the Wall Street Journal reported last month, closing off one avenue for bringing a criminal case against the auto maker over a deadly ignition-switch defect. Read more. (Subscription required.)
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