Car Accidents

GM settles ignition switch lawsuit with state AGs for $120 million

The Wall Street Journal reports General Motors will pay $120 million to 49 states and Washington, DC under a settlement with state attorneys general over the company’s faulty ignition switches that have been linked to 124 deaths. GM had known about the defect for more than a decade prior to recalling 2.6 million vehicles in early 2014. The Financial Times reports GM previously agreed to settle a Justice Department probe for $900 million in September 2015.

Reuters  reports the terms of the settlement prevent GM dealers from selling vehicles with uncompleted recalls, and GM will be required to assemble a team to “improve and enhance recall awareness to car owners with open recalls.” Reuters quotes GM spokesman David Caldwell saying that the company “will continue ongoing improvements it’s made to ensure the safety of its vehicles.” New York Attorney General Eric Schneiderman said GM had “turned a blind eye for years and chose to conceal the safety defects associated with several models of their vehicles.”

The Detroit (MI) Free Press quotes a statement from GM saying, “The resolution includes a financial component, and assures GM will continue ongoing improvements made to ensure the safety of its vehicles. These improvements include continuation of a new organizational structure devoted to global vehicle safety and the company’s Speak Up for Safety program.”

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