GM settles Bolt lawsuit for $52 million, consumers receive only $2,000

Recently, the Chevrolet Bolt, touted as GM’s solution to making electric vehicles more accessible to the general public, has been at the center of a lawsuit due to battery-related issues. Instead of fulfilling its promise of revolutionizing the electric car market, the Bolt has been marred by battery recalls and safety concerns related to potential fire risks. However, the resolution of the class-action lawsuit following these problems seems to benefit everyone except the car owners who suffered from the defects.

The class-action lawsuit emerged after the National Highway Traffic Safety Administration (NHTSA) initiated an investigation into reports of battery-related fires involving the Chevrolet Bolt in late 2020. Multiple class actions were filed against GM, ultimately leading to the consolidation of these lawsuits into a single class action, which has now been officially approved for settlement.

The settlement, announced in 2024, outlines that eligible Bolt owners who did not participate in GM’s 2023 compensation program will now be entitled to a $1,400 Visa eRewards card, while former owners or lessees who were eligible for a Chevy software update but sold their vehicles before June 13, 2023, will receive $700. Additionally, each of the 31 plaintiffs named in the consolidated class action will be compensated with $2,000. Although this amount may seem paltry at first glance, especially considering the severity of the defects, the real shock comes from the exorbitant fees that the lawyers involved in the case are set to receive.

Attorneys representing the plaintiffs are poised to collect a staggering $52.5 million in legal fees for their involvement in the lawsuit settlement. This discrepancy between the legal fees and the customer payouts sheds light on the skewed distribution of resources, where the lawyers’ earnings surpass the compensation received by the affected car owners. It raises questions about the prioritization of financial gains over customer satisfaction and justice in the legal system.

While the lawyers walk away with hefty sums, only a fraction of the settlement fund, $62,000, is allocated to GM customers who directly bore the brunt of the Bolt’s battery issues. The disparity in compensation underscores the imbalance in the distribution of benefits following the lawsuit resolution. Despite the legal proceedings and financial implications, the underlying issue remains unresolved – the disappointment and inconvenience faced by Bolt owners due to the vehicle’s safety concerns. The disparity in compensation raises concerns about the effectiveness of legal mechanisms in addressing consumer grievances and ensuring accountability in the automotive industry.