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Home Page >> Settlements >> GM to Pay $900M to End Criminal Charges over Ignition Switch Defect

GM to Pay $900M to End Criminal Charges over Ignition Switch Defect


This is a settlement for the General Motors Recall lawsuit.

New York, NY: General Motors (GM) has agreed to pay $900 million to bring closure to criminal charges brought against by the US government over allegations the automaker hid a handle lethal ignition switch defect, which has resulted in at least 124 deaths.

According to a report in Automotive News, GM admitted to failing to disclose the defect to both the National Highway Traffic Safety Administration and the public. The defect prevents the deployment of airbags in some vehicles.

Additionally, GM has also admitted to misleading consumers about the safety of vehicles affected by the defect.

Under the terms of the three year agreement, GM must retain have its internal safety practices independently monitored as well as its ability to fix defects and recalls. If GM adheres to its obligations set out in the agreement, the criminal charges will be dropped.

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Published on Sep-18-15


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