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GM Settling State Ignition Claims For $120 Million

GM Settling State Ignition Claims For $120 Million

General Motors has agreed to settle claims in 49 states over defective ignition switches with $120 million, according to the company and state attorneys general. The settlement resolves a large swath of the remaining legal matters associated with the 2014 ignition scandal.

The $120 million settlement is adding to an overall bill of $2.5 billion that GM has had to pay out over the issue in the form of penalties and lawsuits over the ignition switches that could cause the engine to stall and prevent airbags from deploying in a crash. GM says 124 deaths and 275 injuries are associated with the issue, which led to the recall of 2.6 million vehicles in 2014.

As part of the settlement with the states, GM dealers cannot sell certified pre-owned vehicles with outstanding recalls. The company is also required to have a team to enhance awareness of recall campaigns.

Not all of the 49 states have disclosed how they will utilize the settlement funds, but some have stated the funds will be used to investigate and prosecute future consumer protection matters.

In 2015, GM also agreed to pay a $900 million fine to the Justice Department as part of a criminal investigation into the matter. As part of this settlement, GM also agreed to have third party oversight for three years.

Although no criminal charges were brought upon individual GM employees involved in the scandal, CEO Mary Barra fired 15 people involved in the matter as part of the fallout.

Several civil and criminal lawsuits remain ongoing between GM and those impacted by the defective ignition switch.





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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