comscore General Motors agrees to $5.75M settlement with California over faulty ignition switches | Honolulu Star-Advertiser
News

General Motors agrees to $5.75M settlement with California over faulty ignition switches

  • ASSOCIATED PRESS / 2014
                                A key in the ignition switch of a 2005 Chevrolet Cobalt in Alexandria, Va. General Motors Co. has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday, Feb. 12.

    ASSOCIATED PRESS / 2014

    A key in the ignition switch of a 2005 Chevrolet Cobalt in Alexandria, Va. General Motors Co. has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday, Feb. 12.

  • ASSOCIATED PRESS / 2014
                                Clarence Ditlow, executive director of the Center for Auto Safety, displays a GM ignition switch similar to those linked to 13 deaths and dozens of crashes of General Motors small cars like the Chevy Cobalt, during a news conference on Capitol Hill in Washington. General Motors Co., has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday, Feb. 12. The faulty ignition switches led to at least 124 fatalities and 274 injuries nationwide.

    ASSOCIATED PRESS / 2014

    Clarence Ditlow, executive director of the Center for Auto Safety, displays a GM ignition switch similar to those linked to 13 deaths and dozens of crashes of General Motors small cars like the Chevy Cobalt, during a news conference on Capitol Hill in Washington. General Motors Co., has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday, Feb. 12. The faulty ignition switches led to at least 124 fatalities and 274 injuries nationwide.

SACRAMENTO, CALIF. >> General Motors Co. has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday.

The faulty ignition switches led to at least 124 fatalities and 274 injuries nationwide. The defect also resulted in the recall of more than nine million vehicles in 2014 — one of the biggest recalls in the nation’s history — from the largest U.S. automaker because the switches sometimes caused the sudden termination of electrical systems, including power steering and power brakes.

In 2015, GM agreed to pay a $900 million settlement to end a U.S. Department of Justice criminal probe, as well as $1 million in 2017 to the U.S. Securities and Exchange Commission for an accounting case. Later that year, the automaker settled with dozens of states for $120 million.

GM did not admit any wrongdoing as part of the 2021 agreement with California, and the company’s media representatives did not immediately respond to a request for comment Friday.

California’s settlement came about because the state’s largest pension system, the California Public Employees’ Retirement System, lost millions of dollars in GM stock. The company knew about the faulty switches in 2005 but failed to report it to federal authorities until 2014, officials said, and hid the problems from investors.

Automakers must notify the National Highway and Traffic Safety Administration within five days of finding out about a safety defect.

“General Motors cheated California twice —- first by concealing a fatal flaw in its vehicles, then by concealing the facts about the flaw in its financial disclosures, which affected the retirement investments of public servants across California,” Attorney General Xavier Becerra said in a statement. “This settlement finally holds GM to account.”

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature
Comments (0)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Scroll Up