General Motors has agreed to pay $900 million to settle two criminal investigations into the company’s handling of faulty ignition switches blamed for at least 124 auto accident deaths. In the settlement, announced Thursday, September 17th, GM agreed to two charges from federal prosecutors: engaging in a scheme to conceal a deadly safety defect and accepting a wire-fraud. GM also admitted to defrauding customers about its safety record.
According to prosecutors, General Motors failed to fix the known ignition switch defect for more than 10 years. Executives, attorneys, and engineers knowingly covered up the damaging facts and issued falsified statements, leading to a delayed recall.
The criminal charges will eventually be dropped if General Motors follows an agreement requiring an independent monitor to oversee safety practices, identify and fix product defects, and manage any further recalls. The agreement will last for three years. No individuals at the company will be charged with any wrongdoing. The $900 million payment is to be classified as a penalty.
The settlement still requires court approval.
See the full news article here.
If you or a loved one has been harmed by a defective product or injured in a car accident, contact The Law Offices of Larry H. Parker today at (800) 333-0000 for a free legal consultation. You may be entitled to compensation.