GM Settles Ignition Switch Litigation for $900 Million
DETROIT – General Motors Co. announced today it has settled certain civil actions against the company related to 2014 product recalls, including the ignition switch recall. By so doing, GM admitted that it did not disclose a deadly problem with small-car ignition switches.
GM agreed to pay a $900 million penalty by Sept. 24 and retain an independent monitor to review and assess compliance.
The first settlement resolves a shareholder class action filed in the United States District Court for the Eastern District of Michigan. In addition, the company said it has reached a memorandum of understanding potentially covering approximately 1,380 individual death and personal injury claimants. They include more than half of the personal injury plaintiffs who have lawsuits pending in the multi-district litigation in the United States District Court for the Southern District of New York.
“The parties to these agreements have resolved difficult claims without the burden, expense and uncertainty of litigation,” said Craig Glidden, GM executive vice president and general counsel.
As a result of these settlements, the company will record a charge of $575 million in the third quarter.
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GM pays $900 million in US criminal settlement over ignition switches
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