GM’s 2nd quarter earnings show $400 million charge taken to compensate victims

General Motors reported last week that it’s 2nd quarter earnings fell by 85%. This huge drop was caused by the financial fallout of its delayed recall of defective vehicles and also a $400 million charge taken to compensate victims of car accidents caused by faulty ignition switches.

The Associated Press reported that recall expenses chopped $1.5 billion from GMs bottom line in the 2nd quarter as it added up the costs of repairs for nearly 30 million cars. GMs safety problems began earlier this year with the recall of 2.6 million Chevy Cobalt and other small cars that had faulty ignition switches. GM knew about the problem for more than ten years before issuing the recall. The company admitted at least 13 people died in crashes caused by the switches, although federal lawmakers say the total could be as high as 100. […]

GM recalls 8.4 million more vehicles, announces compensation

GM recalled another 8.4 million vehicles on Monday, which included more than 8 million for ignition switch defects. The latest recall brings the total vehicles recalled by GM this year alone to 29 million. U.S. News and World Report mentioned that 17.1 million of the recalled vehicles were because of faulty ignition switches.

Some of the latest vehicles recalled date back to 1997 and extend to 2014 models. According to Forbes, vehicles included in the latest recall include the 1997-2005 Chevrolet Malibu, 1998-2002 Oldsmobile Intrigue, 1999-2005 Pontiac Grand Am and 2003-2014 Cadillac CTS.

The Wall Street Journal reported that the automaker admitted it knew of seven crashes, eight injuries and three fatalities involving the cars recalled for the new ignition switch problems. This was essentially the same problem with 2.6 million recalled Chevy Cobalts and other vehicles linked to 13 deaths and 54 accidents. […]

GM recalls another 3.4 million vehicles for ignition switch

The latest recall from GM came yesterday for more faulty ignition switches that can move out of the run position, turning off power steering and power brakes while the car is being driven.

The recalled cars include:

• Buick Lacross 2005-2009
• Chevrolet Impala 2006-2014
• Cadillac Deville 2000-2005
• Cadillac DTS 2004-2011
• Buick Lucerne 2006-2011
• Buick Regal LS and GS 2004-2005
• Chevrolet Monte Carlo 2006-2008

Monday’s recall came after more review of ignition switch issues in the wake of 2.6 million recalled Chevrolet Cobalts and other small cars for similar problems. GM said this recall pertains to a different ignition switch than those previously recalled. This latest recall raises even more questions about just how extensive the safety problems are at GM.

GM said in a statement yesterday that the switches could rotate out of “run” if the key has excess weight and the car experiences some jarring event such as hitting a pothole or crossing a railroad track. […]

GM recalls more than 500,000 Chevrolet Camaros for ignition switch problem

GM announced recalls of nearly 600,000 vehicles on Friday, including approximately 510,000 Chevy Camaros from the 2010-2014 model years for an ignition-switch issue. GM said the Camaro issue is similar, but not linked to, the problem with the Chevy Cobalt that resulted in the recall of 2.6 million vehicles earlier this year.

The automaker found that a tall driver in a Chevy Camaro, sitting close to the steering wheel, can hit the key fob with a knee, knocking the ignition switch from the run to accessory position, shutting off important car functions, such as power steering, airbags and the power break assist. GM is aware of three crashes that resulted in four injuries that may be attributed to this problem. The company discovered the problem during internal testing following the recall of millions of older small cars earlier this year for a faulty ignition switches. […]

GM fires 15 for actions related to ignition switch defect

GM CEO Mary Barra announced today that 15 people have been fired for being incompetent or irresponsible in their actions involving fatally flawed ignition switches that are linked to 13 deaths where airbags failed to inflate during car crashes.

This included those in senior management and executive roles and also switch engineer Ray DeGiorgio and development engineer Gary Altman. DeGiorgio, the GM engineer who signed off on a change to the ignition switches that improved their performance, met with investigators last week to talk about his role in the problem which resulted in so many fatal car crashes.

In 2006, approximately two years after cars with the defective switches were launched, DeGiorgio signed off on a change to the switches, according to court documents. Company documents also show that the design change was not accompanied by a change in the part number, making it difficult to track the change. […]

Major news agencies reporting that GM ignition switch failure may have caused 74 fatalities

Reports from many news agencies, including the Chicago Tribune, were based on information from Reuters after a search of the Fatality Analysis Reporting System (FARS), a national database of information submitted by local law-enforcement agencies, for single-car frontal collisions where no front airbags deployed and the driver or front-seat passenger were killed. Reuters reviewed crashed reported to U.S. safety regulators between 2003 and 2012, and found that such accidents occurred at a higher rate in GM cars than in competitor models.

According to the Chicago Tribune, Reuters compared the incidence of this type of deadly accident and the Chevrolet Cobalt and the Saturn Ion against the records of three small car competitors: Ford Focus, Honda Civic and Toyota Corolla. The study found the frequency of accidents in the Ion nearly six times that of the Corolla and twice that of the Focus. The Chevrolet Cobalt followed closely behind the Ion in accidents. […]

The GM recall nightmare continues with more safety issues

The number of vehicles involved in the GM recall rose yesterday to 29 as GM recalled another 2.4 million cars and trucks. That brings the number of vehicles called in to repair defects this year alone to a record 13.6 million in the US. According to the Boston Globe, that’s more than the total number of cars GM sold in the US in the last five years, and surpasses GM’s previous US recall record of 10.75 million vehicles, set in 2004.

The latest recalls are to repair problems with safety belts in several crossover models, in addition to problems with airbags, gearshifts and retention clips in other cards. The recalls include Buick Enclave, Chevrolet Traverse and GMC Acadia full-size crossovers from the 2009-2013 model years. It also covers 2009-2010 Saturn Outlooks for a problem with the front safety lap belt cables. 2004-2008 Chevrolet Malibus and 2005-2008 Pontiac G6s with four-speed automatic transmission have been recalled for a problem with the gearshift cable. […]

GM Fined $35 Million for Recall Delay

GM will pay the maximum $35 million fine to the United States Department of Transportation for delays in the recall of cars with defective ignition switches. The defect has been linked to 13 deaths and 32 crashes.

The fine is the highest civil penalty ever paid as a result of an investigation into recall problems by the National Highway Traffic Safety Administration (NHTSA). In a released statement, the Department of Transportation (DOT) said that the GM has also agreed to make “significant and wide-ranging internal changes” in how it monitors safety issues.

The DOT reported that GM will need to take part in unprecedented oversight requirements as a result of the findings form the NHTSA’s timeliness investigation regarding the Chevy Cobalt and the automakers’ failure to report a safety defect in a more timely manner.

Federal law requires that all auto manufacturers must notify the NHTSA within five business days of determining that a safety-related defect exists. […]

Scranton personal injury lawyer talks about more GM recall

GM recalled another 2.7 million vehicles in the United States for safety problems that have resulted in hundreds of complaints and some injuries. This follows millions of vehicles being recalled earlier this year for faulty ignition switches.

GM’s latest recall was for tail light malfunctions in cars including the Chevrolet Malibu, Pontiac G6, and Saturn Aura. According to the New York Times, the action for the Chevy Malibu marks the ninth time in about 16 months that the automaker has recalled vehicles that previously only had dealer bulletins sent.

So far this year, GM has recalled about 11.1 million vehicles in the US alone. The largest of the new recalls covers 2.4 million cars that have faulty wiring that could case brake lights to malfunction and not illuminate or could illuminate the lights without the pedal being touched.

GM says corrosion causes the brake-light fault, […]

Pennsylvania personal injury lawyer: More accidents may be tied to GM faulty ignition switch

In what the New York Times reported as the most concrete movement yet that GM intended to compensate victims and their families, the lawyer hired by GM to determine compensation of victims of GM cars with faulty ignition switches met last week with lawyers representing hundreds of people and their families who claim they were affected by accidents involving the vehicles.

This may mean that that the potential number of those affected is much larger than the 13 deaths and 32 crashes that GM has previously admitted are linked to the faulty ignition. The Los Angeles Times reported in March that there could be as many as 303 deaths linked to those faulty ignition switches. This was based on a new report commissioned by the Center for Auto Safety, an independent watchdog group. GM vigorously challenged the report, stating that other issues could also have caused the 303 deaths. […]

GM using service bulletins to report recalls

GM’s announcing of recalls by service bulletins to car dealers and owners is not an effective way of informing the public of serious problems that may cause car accidents and compromise the safety of the person driving, as well as other passengers in the vehicle.

Over the past year, GM has recalled vehicles due to an array of safety issues, including problems with airbags, power steering, and electrical systems. These recalls were preceded by countless bulletins alerting of the problems months or years in advance, yet not ordering repairs, according to regulatory findings.

Technical service bulletins are only meant to alert dealers, and occasionally car owners, about minor problems, like a faulty interior light or air conditioner. They are not intended to address serious safety issues, which according to the law, must be handled by recalls.

In just one instance, […]

GM Accused of Cover-up in Faulty Ignition Switch Recall. Chevy Cobalt Subject of Many Investigations.

Senators grilled General Motors CEO Mary Barra this week about the years of delays in recalling vehicles with faulty ignition switches, and accusing GM of a cover-up to hide the problem that caused at least 13 fatal accidents.

Bara told the house committee that she first heard there was a problem with the Chevrolet Cobalt in December, while GM’s senior management was apprised of the full matter on January 31, when the company announced its initial recall of Chevrolet, Saturn, and Pontiac vehicles.

Senator Richard Blumenthal of Connecticut spoke up during the senate hearing telling Barra that he though “it’s pretty much incontrovertible that GM knew about the safety defect, failed to correct it…and then concealed it from the courts and the United States.”

Internal documents show the company knew about problems with the switch for at least a decade, but recalls did not begin until this February. […]

Munley Law Personal Injury Attorneys personal injury lawyer talks about Chevy Cobalt and other related crashes and potential GM cover up

The Department of Justice and committees in the U.S. House and Senate are now investigating whether GM delayed recalling Chevrolet Cobalts and other cars with faulty ignition switches, as well as whether the National Highway Traffic Safety Administration (NHTSA) should have demanded the automaker act sooner.

According to depositions filed in a civil lawsuit against GM over the death of a 29-year-old pediatric nurse in the crash of her Chevrolet Cobalt, the company knew a decade before it issued a recall that its Cobalt had an ignition switch problem that could shut off the engine while driving. This would cut off the driver’s power steering and brakes, in addition to safety systems, such as airbags.

GM acknowledged the problem in a 2005 technical service bulletin, a routine notice from automakers to dealers about possible problems and fixes. The bulletin did not tell dealers to put new key covers on the keys of the new Cobalts before they were sold or to alert buyers of the possibility that the key might move out of place and the engine might stall. […]

Pennsylvania personal injury lawyer discusses GM safety recall

GM has announced a recall of 1.6 million cars in the U.S. for a faulty ignition switch that can cut power without warning, shutting off safety systems, including airbags. GM knew of 13 deaths linked to the airbag failures.

The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into why GM did not promptly recall the vehicles after it learned that faulty ignition switches were causing fatal crashes.

An increasing number of defective airbags lead to a record number of recalls in 2013, according to NHTSA records. Airbags have, at times, failed to deploy in serious car crashes and deployed on drivers who weren’t in crashes, causing serious injuries.

GM recalled their vehicles in two phases last month, but documents filed with the federal safety agency demonstrate that the automaker first learned of the problem in 2004. GM told NHTSA that it knows of 31 frontal crashes and 13 front-seat deaths in cases in which the faulty ignition switch had moved out of the “run” […]

More Than 260,000 Children Injured in Toy-Related Accidents

Toy-related injuries land hundreds of thousands of children in the ER in 2011

A serious accident involving your child is one of life’s most wrenching experiences. A family’s ordeal is compounded if the child’s death or serious injury occurred in a preventable accident caused by an unsafe toy or dangerous product.  If you believe your child was injured by a dangerous toy, talk to attorneys who know the law regarding unsafe toys.

A recent report on toy-related injuries by the U.S. Consumer Product Safety Commission says there were 262,300 children treated for toy-related injuries in U.S. hospital emergency rooms in 2011. While most children were treated and released, some suffered serious injuries or even fatal injuries. Thirteen children younger than age 15 died of toy-related accidents in 2011, the consumer product safety commission reported.

Most toy-related deaths were caused by asphyxiation or drowning. […]

Children Killed By Falling Furniture In 2011

41 killed by falling furniture in 2011

Falling TVs and furniture caused the death of a record number of U.S. children last year, according to federal safety statistics.

The U.S. Consumer Product Safety Commission (CPSC) released a report on December 13 that found 349 people were killed by toppling televisions, dressers and appliances between 2000 and 2011. Eighty-four percent of the victims were under the age of nine.

Forty-one people were killed in 2011 alone – or almost one death per week. This was 10 more than 2010 and the highest one-year number of tip-over fatalities ever reported.

Accidents and unintentional injuries are the fifth leading cause of death in the United States, according to the Centers for Disease Control.

This is from the CPSC report:

CPSC estimates that more than 43,000 consumers are injured each year in tip-over incidents. […]

Half a Million Bottles of Generic Lipitor Recalled

Pennsylvania residents taking cholesterol medicine should be warned that 480,000 bottles of generic Lipitor have been recalled because they might contain tiny glass fragments.

On November 9, Ranbaxy Inc. announced a massive voluntary recall of Atorvastatin Calcium Tablets.

Days later, Ranbaxy announced it was halting production of the tablets altogether until it had pinpointed the cause of the glass particulates – thought to have come from a faulty liner on a production tank at the company’s production facility in India.

Individuals and families who are injured by defective drugs have a right to bring a lawsuit for financial compensation.

Following is from the U.S. Food and Drug Administration’s recall notice:

On November 9, Ranbaxy Inc. initiated a voluntary recall of 41 affected lots of Atorvastatin Calcium Tablets (10 mg, 20 mg and 40 mg) which is a solid oral dosage form, […]

Pennsylvania Nets $4 Million in Avandia Settlement

Pennsylvania will rake in more than $4 million as part of a national settlement with GlaxoSmithKline over unlawful promotion of the diabetes drug Avandia.

The total payout – which will be shared by 37 states – is $90 million.

The settlement follows a flood of accusations that the British-based pharmaceutical company dangerously downplayed Avandia’s cardiovascular risks and side effects.

For more than 40 years, the Pennsylvania injury lawyers at Munley Law Personal Injury Attorneys have helped people who have been harmed as a result of unfair and deceptive business practices.

As part of the consent agreement, GlaxoSmithKline will change how it markets and promotes Avandia by:

• Not making bogus claims about Avandia;
• Not making safety claims about Avandia that are unsupported by substantial evidence or clinical experience;
• Not promoting investigational drugs; […]

8 Tips for Avoiding Sandy Repair Scams

How to avoid a contracting scam

Pennsylvania residents should be on guard against Superstorm Sandy-related home repair scams.

Unqualified contractors, high-pressure sales pitches and price gouging are on the upswing – and unwary homeowners are paying the price.

The situation has prompted state Attorney General Linda Kelly to issue a consumer warning:

“Natural disasters can be a magnet for scam artists and unscrupulous operators who are more interested in taking money from storm victims than in helping with repairs,” Kelly said. “Consumers should remain vigilant, understand their rights and carefully evaluate any contractors they hire to repair homes or to address other storm damage.

“It is understandable for homeowners to look for speedy repairs, attempting to return to normal activities as quickly as possible, but consumers should not allow the desire for immediate repairs to cloud their judgment regarding contractors.”

Following are 8 tips to avoid falling prey to a shady shingle or siding company:

• Ask all contractors to give you their state registration number, […]

Energy Drinks Linked to Injuries and Death

Popular high-caffeine energy drinks sold in hundreds of Pennsylvania grocery stores and gas stations might also be killers.

At least one wrongful death lawsuit has already been filed.

The mother of a 14-year-old Maryland girl who died of “cardiac arrhythmia due to caffeine toxicity” after consuming large cans of Monster Energy on two consecutive days has sued the product’s manufacturer for causing her daughter’s death, according to The New York Times.

And she is far from the only victim, as records just released by the U.S. Food and Drug Administration reveal.

The list of potential caffeinated killers identified by the FDA include:

• Monster Energy. Five people may have died over the past three years after drinking Monster Energy, a super-caffeinated beverage sold under names like Monster Rehab, Monster Assault and Monster Heavy Metal.
• 5-Hour Energy. […]