GM Cadillac Chevrolet GMC Engine Recall Class Action: What Owners Need to Know About Compensation
If you own a GM truck or SUV with a faulty V8 engine, you might be entitled to cash compensation—but the legal landscape is complicated, and the amounts vary wildly depending on which engine you have and where you live.
Here’s the thing about class action lawsuits: they’re slow, they’re complicated, and they often pay lawyers far more than they pay actual vehicle owners. But they can also be the only way regular people can hold a giant automaker accountable when something goes wrong. If your GM vehicle has been affected by one of the ongoing engine recalls, understanding your rights and options is crucial.
TL;DR
There are currently two major GM engine defect situations: a settled lawsuit over the 5.3L LC9 V8 (2011-2014 models) that paid owners around $3,380 on average, and an active, ongoing class action over the 6.2L L87 V8 (2021-2024 models) that affects nearly 600,000 vehicles . The L87 lawsuit is still in court—GM is trying to get it dismissed, arguing the recall and extended warranty already fix the problem . If you own an affected L87 vehicle, you likely qualify for free repairs under the recall, but compensation for diminished value or higher fuel costs is still being fought over in court.
Key Takeaways
- Two Different Engine Issues: The settled LC9 (5.3L) lawsuit covers 2011-2014 vehicles with oil consumption problems. The active L87 (6.2L) lawsuit covers 2021-2024 vehicles with catastrophic engine failure risks .
- Settled LC9 Payouts: Eligible owners in California, Idaho, and North Carolina received about $3,380 per vehicle. Oklahoma owners got $700 .
- L87 Status: Still active in court. GM argues its recall and 10-year/150,000-mile warranty make the lawsuit unnecessary .
- What’s at Stake: For L87 owners, potential compensation could cover out-of-pocket repairs, diminished resale value, and higher fuel costs from GM’s recommended thicker oil .
- No Settlement Yet: The L87 class action is not settled. Multiple lawsuits have been consolidated, and motions to dismiss are pending .
The Two GM Engine Lawsuits: What’s the Difference?
GM is dealing with two separate engine defect situations, and it’s easy to get them confused. Here’s the breakdown:
1. The Settled LC9 (5.3L V8) Lawsuit
This one is basically done. A federal judge approved a $150 million settlement covering 2011-2014 Chevrolet and GMC trucks and SUVs with the 5.3L LC9 V8 engine . Owners alleged the piston rings were defective, causing excessive oil consumption, fouled spark plugs, rough idling, and sluggish acceleration .
What owners got:
- About 43,000 eligible class members in California, Idaho, and North Carolina received an average payout of $3,380 per vehicle .
- The three lead plaintiffs each received $30,000 .
- Lawyers took home $57 million in fees .
The catch: The settlement only covered vehicles purchased or leased in specific states by certain dates—not every affected owner qualified.
2. The Active L87 (6.2L V8) Lawsuit
This is the big one currently in the news. In April 2025, GM recalled nearly 600,000 vehicles equipped with the L87 6.2L V8 engine due to manufacturing defects in connecting rods and crankshafts that can cause catastrophic engine failure .
Affected vehicles include :
- 2021-2024 Cadillac Escalade and Escalade ESV
- 2021-2024 Chevrolet Silverado 1500, Suburban, and Tahoe
- 2021-2024 GMC Sierra 1500, Yukon, and Yukon XL
- (Some lawsuits also include 2019-2020 Silverado and Sierra models)
The danger: The National Highway Traffic Safety Administration (NHTSA) has warned that engine failure can happen without warning, leading to “loss of motive power” and increased crash risk . GM has acknowledged at least 12 crashes and 12 injuries potentially related to the defect .
What’s Happening With the L87 Lawsuit Right Now?
The short answer: it’s still being fought in court.
GM’s Defense Strategy
GM is actively trying to get the L87 class action dismissed. Here’s their argument :
- The recall fixes the problem. GM says its April 2025 recall—which includes free engine replacements for failing vehicles and a 10-year/150,000-mile extended warranty—already gives owners everything they’re asking for .
- It’s a supplier quality issue, not a design flaw. GM claims the failures were caused by contamination in connecting rods and crankshaft oil galleries from suppliers, not a fundamental engine design defect .
- Only about 3% of engines failed. GM argues that if the design were truly defective, failures would be far more widespread .
- Owners who didn’t experience failure can’t sue. GM told the court that plaintiffs can’t claim damages based on defects or breakdowns suffered by other owners—they need to show they personally experienced the problem .
The NHTSA has opened an inquiry to verify whether the recall remedy is sufficient, so GM might think it’s done enough, but the agency could decide otherwise .
What Plaintiffs Are Arguing
The lawyers suing GM aren’t buying GM’s arguments. They claim :
- GM knew about the defect for years but concealed it. The company closed three internal investigations between 2022 and 2024 before finally issuing a recall .
- The “fix” isn’t really a fix. Vehicles that pass inspection just get switched to thicker oil (0W-40 instead of 0W-20), which reduces fuel economy and doesn’t address the underlying mechanical defect .
- Owners face a “dangerous dilemma”: Either keep driving a vehicle that might suddenly fail, or spend hundreds more on fuel each year .
- Diminished resale value. The defect and recall have made these vehicles worth less on the used market .
The Australian Angle
This isn’t just a U.S. problem. A class action has also been launched in Australia covering more than 10,000 Chevrolet Silverado 1500 pickups with the L87 engine . The firm behind it claims some owners received replacement engines that failed within 27 kilometers of leaving the dealership . More than 800 people have registered for that action so far .
Chart: GM Engine Lawsuit Comparison
What Should L87 Owners Do Right Now?
If you own a 2021-2024 GM vehicle with the L87 6.2L V8, here are practical steps to protect yourself:
1. Check If Your Vehicle Is Affected
Enter your VIN on the GM Owner Center website at experience.gm.com/ownercenter/recalls. If your vehicle is part of the recall, you’ll see it there .
2. Get the Recall Work Done
- If your engine passes inspection: The dealer will switch you to 0W-40 oil, install a new fill cap and filter, and give you an owner’s manual insert about the new oil requirement .
- If your engine fails inspection: You’ll get a free engine replacement and a 10-year/150,000-mile extended warranty .
Important: GM has issued a stop-sale order for affected vehicles in dealer inventory, meaning they can’t be sold until repaired .
3. Document Everything
If you’ve already experienced engine problems or paid for repairs, keep all records:
- Repair orders and receipts
- Towing invoices
- Rental car receipts
- Correspondence with your dealer
- Photos or videos of warning lights or issues
This documentation could be crucial if the class action eventually provides reimbursement .
4. Consider Joining the Class Action
If you’re interested in potential compensation, you can join the L87 class action. Multiple law firms are handling it, including Hagens Berman, which was appointed interim co-lead counsel . Most firms handle these cases on a contingency basis—meaning you don’t pay unless they win.
But be aware: GM is trying to get the case dismissed, and there’s no guarantee of a payout or timeline .
The Bigger Picture: What This Means for GM Owners
The $66 Million Lawyer Problem
If you’re wondering how much of a settlement actually goes to owners versus lawyers, the LC9 case is instructive. In that case :
- Lawyer fees: Over $66 million across two settlements
- Owner payouts: $700 to $3,380 per person
- Lead plaintiffs: $15,000 to $30,000 each
In the LC9 settlement, a federal judge approved the $57 million fee award, noting it was “extraordinary” but justified because the lawyers took the case to trial and secured a post-trial settlement worth 122% of the jury verdict . The judge acknowledged the fee “materially exceeded” the typical 25% benchmark but felt the litigation performance warranted it .
The L87 Timeline
Here’s what we know about where the L87 lawsuit stands :
- Jan 2025: NHTSA opens investigation into L87 engine failures
- April 2025: GM issues recall covering ~600,000 vehicles
- June 2025: Multiple class actions filed
- Nov 2025: Court appoints Hagens Berman as interim co-lead counsel
- Feb 2026: Consolidated class action complaint filed
- June 2026: GM files motion to dismiss
What GM Is Offering Versus What Owners Want
GM’s recall provides free repairs and extended warranties—but plaintiffs argue that’s not enough . The lawsuit seeks compensation for:
- Repair and replacement costs not covered by warranty
- Loss of vehicle use during repairs
- Diminished resale value from the defect
- Higher fuel costs from the thicker oil requirement
- Property damage and medical expenses from accidents
The plaintiffs also claim GM’s recall doesn’t address the fact that the vehicles were “not merchantable” and “not fit for the ordinary purpose” for which vehicles are used .
Comparison Table: Your Options as an Affected Owner
| Option | What It Does | Pros | Cons |
|---|---|---|---|
| Get the recall repair | Free inspection, oil change, or engine replacement | Free, keeps your vehicle safe | Thicker oil may reduce fuel economy |
| Join the class action | Potentially get cash compensation later | Could recover costs beyond the recall | No guarantee of payout, could take years |
| File an individual lawsuit | Sue GM on your own | Could get more money | Expensive, complex, hard to win |
| Do nothing | Skip the recall | No effort | Risk of catastrophic engine failure |
Frequently Asked Questions
What vehicles are affected by the GM engine class action?
Two separate actions: the settled LC9 case covers 2011-2014 Chevrolet and GMC trucks/SUVs with the 5.3L V8. The active L87 case covers 2021-2024 Cadillac Escalade, Chevrolet Silverado, Suburban, Tahoe, GMC Sierra, and Yukon models with the 6.2L V8 .
How much money will I get from the GM engine class action?
For the settled LC9 case, eligible owners got around $3,380 on average. For the L87 case, there is currently no settlement, so no payouts have been determined .
Is the GM L87 engine recall a class action settlement?
No. The recall is a safety action where GM repairs vehicles for free. The class action is a separate lawsuit seeking additional compensation for owners .
Do I have to join the class action to get my engine fixed?
No. The recall repair is free regardless of whether you join any lawsuit. You can get your engine inspected and repaired at any GM dealer at no cost .
What if I already paid for an engine repair?
You may be eligible for reimbursement if the repair was covered under the recall or special coverage. For the L87 special coverage, reimbursement requests must be submitted to the dealer by May 31, 2026 .
Why did GM switch to thicker oil instead of replacing all engines?
GM says vehicles that pass inspection don’t need replacement. The thicker oil is meant to provide better protection for engines that haven’t failed yet. Plaintiffs argue this doesn’t fix the defect and reduces fuel economy .
Can I opt out of the class action and sue GM myself?
Yes, but you need to follow the specific procedures outlined in the class notice. Opt-out deadlines for the settled LC9 case have already passed. For the active L87 case, deadlines haven’t been set yet because there’s no settlement .
What should I do if my engine fails while driving?
Pull over safely as soon as possible. Have the vehicle towed to a GM dealer and ask for a loaner vehicle or rental coverage. Document everything. Contact GM customer care at 1-800-222-1020 .
References
Verified Sources for GM Engine Recall and Class Action Information:
- Seeger Weiss LLP – GM 6.2L Engine Recall Overview
- Law Office of Howard Gutman – L87 Class Action Q&A
- The Detroit News – GM Sued Over Engine Recall
- Car and Driver – LC9 Settlement Details
- NHTSA – GM Safety Recall Report 25V-274 (L87)
- Class Law Group – L87 Engine Lawsuit Investigation
- Hagens Berman – L87 Class Action Information
- Drive – Australian L87 Class Action
- Beasley Allen – LC9 Settlement Approval
Do you own a GM vehicle with the L87 engine? Have you experienced any issues? Share your story in the comments below.
