Mexican Media Brands
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.
#legal
Share
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.
RELATED CONTENT
-
U.S. Charges Five More VW Execs in Diesel Cheating Scandal
U.S. prosecutors have charged five more current or former Volkswagen AG executives in connection with the carmaker’s diesel emission cheating scandal.
-
Takata Opens $850 Million Fund to Pay Carmakers for Airbag Woes
Takata Corp. has launched an $850 million fund in the U.S. to repay carmakers for a portion of their costs to recall Takata airbag inflators that can explode when triggered by a crash.
-
Uber Fires Levandowski Over Waymo Lawsuit
Rider-share provider Uber Technologies Inc. has fired Anthony Levandowski, who headed its autonomous vehicle program until stepping aside in April.