Search
 

GM to pay $900 million after probe into faulty ignitions

The criminal settlement may end almost two years of questions about what GMs executives knew and whether they would be held personally responsible.

By Patricia Hurtado, Bloomberg, David Welch, Bloomberg | Updated on September 17, 2015
GM, the largest U.S. automaker, recalled 2.59 million small cars to replace a faulty ignition switch, which has been linked to at least 124 deaths. (Photo: Shutterstock.com)

(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.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.