GM to Pay $900 Million to Settle Criminal Probe into Ignition Switch Recall

General Motors Co. has agreed to pay a $900 million fine to end a U.S. Dept. of Justice criminal investigation into its handling of defective ignition switches that killed at least 124 people.

The Justice Dept. charged GM with one count of concealing material facts from the National Highway Traffic Safety Administration and one count of wire fraud. Both criminal charges will be dropped three years from now if GM abides by the terms of the deferred prosecution agreement.

GM admits it misled consumers about the safety of cars equipped with the defective switches and for nearly two years concealed the problem from NHTSA. The company discovered the defect in 2001 a year before the switch went into production but was slow to recognize its significance.

By 2012 certain GM supervisors and attorneys at the company knew the switches were implicated in fatal crashes, but they failed to act, the Justice Dept. says. GM didn't recall the 2.6 million vehicles equipped with the flawed switches until 2014.

Under terms of the settlement, GM must pay the $900 million penalty to the federal government no later than Sept. 24. It also must submit to an independent monitor who will review and assess GM's policies and procedures related to recalls and safety-related public statements.

The Justice Dept. emphasizes that GM has taken "exemplary actions" to make amends since the department's investigation began in February 2014. It also notes the company maintained a steady flow of "unvarnished facts," including information protected by client-attorney privilege, to federal investigators.

The department did not file criminal charges against individuals. But it says it will continue to investigate certain GM employees, including some among the 15 employees GM fired last year in connection with the recall.