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GM Will Pay $120 Million to Settle State Ignition-Switch Claims

General Motors Co. has agreed to pay $120 million to settle claims by state attorneys general that GM knew about defects in 2.6 million of its ignition switches but concealed the problem for years, thereby violating state consumer protection laws.
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General Motors Co. has agreed to pay $120 million to settle claims by state attorneys general that GM knew about defects in 2.6 million of its ignition switches but concealed the problem for years, thereby violating state consumer protection laws.

The switches have been blamed for 124 deaths and 275 major injuries. GM previously paid some $2.5 billion in penalties and settlements relating to the flawed devices.

The switches can easily be jogged out of the “run” position, thereby shutting off the engine and disabling the vehicle’s power steering, power brakes and airbag system.

The settlement resolves lawsuits by 49 states and the District of Columbia. The agreement stipulates that GM dealers cannot sell so-called “certified” used cars until the vehicles have had all outstanding recall work completed.

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