$50 million settlement for GM fuel pumps provisionally approved

GM Fuel Pump Settlement Agreement Overview:

• WHO: General Motors has reached a $50 million settlement with drivers of certain diesel trucks and vans.
• Why: The plaintiffs stated that their vehicles were equipped with CP4 fuel pumps, which caused “catastrophic” complications.
• Where: The GM fuel pump settlement was filed in federal court in Michigan.

General Motors has reached a preliminary settlement agreement of $50 million with motorists who accuse the company of selling vehicles with CP4 fuel pumps, which they say are “ticking time bombs.”

The plaintiffs filed a motion on June 7 expressing their support for the proposed settlement. The settlement would end class actions that GM knowingly sold diesel trucks equipped with CP4 high-pressure fuel injection pumps from Bosch.

Although these fuel injection pumps supposedly saved GM money, the pumps reportedly caused “catastrophic” complications.

The plaintiffs claim that the CP4 fuel pumps are incompatible with American diesel fuel and that they “cause the pump to run nearly dry, causing it to self-destruct and – ultimately – destroy the fuel injection system and the engine as a whole.”

Judge: Proposed settlement appears fair

On July 11, a federal judge in Michigan indicated he would tentatively approve the settlement, Law360 reports.

U.S. District Judge Terrence G. Berg said the class action lawsuit with GM ensures fair compensation for drivers who either overpaid for their allegedly defective vehicles or had to pay for repairs out of their own pockets.

“The pump secretly leaves metal shavings and dirt throughout the injection system and engine until it suddenly and without warning fails,” the CP4 fuel pump lawsuit states.

The settlement affects customers who purchased certain model years of GMC and Chevrolet diesel trucks with 6.6-liter V8 Duramax LML engines or LGH engines with CP4 fuel injection pumps from authorized GM dealers in California, Florida, Illinois, Iowa, New York, Pennsylvania and Texas.

Under the settlement, GM would pay $50 million to compensate truck owners who paid out of pocket for repairs to their engines due to the alleged defect, as well as former owners who allegedly overpaid for their vehicles. Drivers who had to pay for the repairs could receive between $6,300 and $12,700, depending on the number of claimants, Law360 reports.

GM also agreed to provide a 12-month limited warranty that will cover 50 percent of the cost of repair or replacement if the fuel pump on a class member’s car fails during the warranty period, which begins after final approval of the settlement.

What do you think about this settlement in GM’s fuel pump class action lawsuit? Let us know in the comments.

The plaintiffs are represented by Hagens Berman Sobol Shapiro LLP, The Miller Law Firm PC and Hilliard Law.

The CP4 fuel pump class action lawsuit Is Chapman et al. v. General Motors LLC, Case No. 2:19-cv-12333-TGB-DRG, in the United States District Court for the Eastern District of Michigan.

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