(Bloomberg) -- General Motors Co. will pay $900 million to settle a criminal probe by the U.S. Justice Department over the ignition switch flaw that has bogged down Chief Executive Officer Mary Barra in recalls and investigations since almost the start of her tenure.
The settlement is part of a deferred-prosecution agreement under which the U.S. will monitor the automaker and the company must cooperate with the government, federal prosecutors in New York said Thursday. No individuals were charged, while the company was accused of conspiracy and wire fraud. Those charges will remain pending for the next three years until the case is dismissed.
“GM admits that it failed to disclose to its U.S. regulator and the public a potentially lethal safety defect that caused airbag non-deployment,” according to an agreement that dates the scheme to April 2006. “Nothing was done at this time to remedy the cars equipped with the defective switch that were already on the road.”
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