Hawley announces GM settlement brings around $2 million to Missouri
- Author: Joey Payne Oct 20, 2017,
Oct 20, 2017, 0:47
General Motors Co. will pay out $120 million in a multi-state settlement over its defective ignition switches. The settlement concludes the state investigations.
Since disclosing the defect, GM has paid a $900 million fine to end a criminal investigation by the U.S. Department of Justice and settled a class action brought by investors for $300 million. "General Motors and other automakers should keep their customers' safety at the forefront of everything they do", Wasden said in a statement.
"The states alleged that these actions were deceptive and that the automaker's actions violated state consumer protection laws", Herring's office said in a news release.
The defect in the GM ignition switches caused vehicles to move out of the run position to the accessory or off position, according to Beshear's office.In a crash, the vehicle's safety airbags may fail to deploy because of a loss of electrical systems.
If a collision occurs while the ignition switch is in "accessory" or "off", the vehicle's safety airbags may also fail to deploy, increasing the risk of serious injury or death that the airbag was created to prevent.
CT and its municipal co-plaintiffs alleged that certain GM employees knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment.
The U.S.'s largest auto maker said it had "reached a constructive resolution" with the state attorneys general that, in addition to the payment, "assures GM will continue ongoing improvements made to ensure the safety of its vehicles".
Approximately $4.3 million will go into Michigan's general fund, Attorney General Bill Schuette announced Thursday.
Maintain a Global Vehicle Safety Organization that identifies and investigates safety issues. It led to a 2014 recall of almost 2.6 million older cars.
The settlement also provides that GM not represent that a vehicle is "safe" unless they have complied with the Federal Motor Vehicle Safety standards to the motor vehicle at issue. Dealerships must make sure recall repairs are complete before they can sell the vehicle.