Free Market Evaluation - Send us your resume and we will give you free feedback
Comcast and Time Warner to Discuss Merger with Department of Justice
Comcast and Time Warner to Discuss Merger with Department of Justice
Upon Net Neutrality Rules Being Published, Legal Challenge Filed
Upon Net Neutrality Rules Being Published, Legal Challenge Filed
United States Cannot Circumvent Foreign Privacy Laws, Microsoft Says
United States Cannot Circumvent Foreign Privacy Laws, Microsoft Says
$150 Million Awarded to the Family of 4-Year-Old Killed In Jeep Fire
$150 Million Awarded to the Family of 4-Year-Old Killed In Jeep Fire

General Motors Hires Outside Law Firm for Review of Litigation Department [post_view]

GM

An outside law firm has been hired by General Motors Co. in an effort to review the method in which the company handles litigation, according to The Wall Street Journal. The announcement was made by the general counsel of the company in testimony that was prepared for a Senate hearing on Thursday.

The statement from GM General Counsel Michael Millikin does not name the law firm that was hired, but said it will conduct a “zero-based review.”

Millikin will face questioning from U.S. lawmakers about why his lawyers settled multiple cases involving GM cars where the airbags did not deploy, but he and other senior executives at the company were not notified of those issues.

General Motors is being investigated by the Justice Department for potential criminal violations surrounding the 13 deaths linked to defective ignition switches in Saturn Ions, Chevrolet Cobalts and other compact vehicles. The switches could turn off by accident, which would cut power to the airbags in the vehicles.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Millikin is expected to testify that some of his lawyers did not do their jobs and that he was not aware of the ignition switch defect in the Cobalt until February. The company, on the other hand, has testified that employees knew of the issue at least 10 years ago and that lawyers for the company held evidence as of April 2013 that shows the cause of the airbag failure.

Former prosecutor Anton Valukas issued a report that said Millikin was not told of the issues because GM did not require approval of settlements from higher-ups unless they totaled more than $5 million.

Leave a Reply

Tagged: , ,

Posted by on July 17, 2014. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.