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Posts Tagged ‘gm ignition switch settlement’

GM Agrees to $120m Ignition Switch Scandal Settlement

Money going to 49 states and D.C.

by on Oct.20, 2017

One of the defective GM ignition switch units now blamed for causing at least 124 deaths.

General Motors has agreed to pay out $120 million to settle a lawsuit filed by 49 states and the District of Columbia over its handling of an ignition switch defect linked to at least 124 deaths and 275 injuries.

The problem was revealed in early 2014 and eventually led to the recall of 2.6 million vehicles and the firing of more than a dozen GM employees who either failed to act on early warning signs or attempted to sweep the problem under the carpet.

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“GM will continue ongoing improvements it’s made to ensure the safety of its vehicles,” a spokesman for the automaker said. That includes changes ordered by CEO Mary Barra after the problem was first revealed, as well as efforts that were agreed to as part of a settlement with the federal government in December 2015.

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Bad Week for Those Suing Takata, GM

Courts side with airbag maker; GM derails $1b settlement over faulty ignition switches.

by on Aug.18, 2017

As many as 18 people are known to have died due to faulty Takata airbag inflators.

Motorists looking for settlements related to two of the biggest safety scandals in recent years were in for some unpleasant surprises this week.

General Motors derailed a deal that could have forced it to provide $1 billion in stock to thousands of plaintiffs suing over the company’s faulty ignition switches which were linked to more than 100 deaths and hundreds of injuries.

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Separately, a Delaware bankruptcy court halted a collection of lawsuits filed against the Japanese auto partsmaker seeking damages related to faulty airbags now linked to as many as 18 deaths and about 180 injuries worldwide – though the suits may continue after a 90-day ordered by Judge Brendan Shannon.

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As GM Closes Out Ignition Investigation, CEO Barra Says Maker Learned its Lesson

On 3-year probation, GM's problems aren't yet over.

by on Sep.17, 2015

GM CEO Mary Barra addresses a company town hall to discuss the ignition switch settlement.

The U.S. Department has concluded a year-longer investigation into General Motors’ handling of a deadly ignition switch defect with a settlement that requires the automaker to pay a $900 million fine. The maker separately negotiated $575 million settlement to conclude various civil suits related to the ignition switch issue now blamed for at least 124 deaths.

The settlement was significantly less than many had expected. And federal investigators did not bring charges against anyone connected with the defect despite GM’s acknowledgement that it waited a decade to deal with the problem. The Justice Dept. had extracted a $1.2 billion fine from Toyota Motor Co. last year to settle charges it had delayed action on defects related to unintended acceleration.

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For her part, General Motors CEO Mary Barra told employees at a town hall meeting at the company’s Vehicle Engineering Center in Warren, Michigan that GM had “let (its) customers down.

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GM Reportedly Set to Settle Justice Dept. Case Over Faulty Ignition Switches

Penalty expected to be in “hundreds of millions of dollars.”

by on Sep.17, 2015

A replacement for the faulty GM ignition switches.

General Motors may take a step closer to wrapping up one of the most troubling incidents in its long history, according to news reports, agreeing to settle a Justice Department criminal investigation into it botched handling of a deadly ignition switch defect.

If preliminary reports prove accurate, GM would pay a penalty in the “hundreds of millions of dollars,” and perhaps as much as $900 million, according to sources close to the investigation quoted by NBC News and other media outlets. That would be substantially less than the $1.2 billion paid by Toyota Motor Co. in March 2014 to settle an investigation into its own safety-related problems.

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The GM settlement also is expected to include a wire fraud charge, though there are no indications any specific individuals will be subject to criminal prosecution, a possibility raised early in the Justice Dept. investigation – and by GM’s own move last year to fire 15 company employees due to their role in delaying a recall of 2.5 million vehicles equipped with faulty switches.

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