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Common Motors settles with California for $5.75M

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SACRAMENTO, Calif. (AP) — Common Motors Co. has agreed to a $5.75 million settlement with California relating to false statements the corporate made to buyers about issues with its lethal ignition switches, state officers introduced Friday.

The defective ignition switches led to not less than 124 fatalities and 274 accidents nationwide. The defect additionally resulted within the recall of greater than 9 million autos in 2014 — one of many largest remembers within the nation’s historical past — from the biggest U.S. automaker as a result of the switches generally precipitated the sudden termination {of electrical} programs, together with energy steering and energy brakes.

In 2015, GM agreed to pay a $900 million settlement to finish a U.S. Division of Justice prison probe, in addition to $1 million in 2017 to the U.S. Securities and Change Fee for an accounting case. Later that yr, the automaker settled with dozens of states for $120 million.

GM didn’t admit any wrongdoing as a part of the 2021 settlement with California, and the corporate’s media representatives didn’t instantly reply to a request for remark Friday.


California’s settlement happened as a result of the state’s largest pension system, the California Public Staff’ Retirement System, misplaced hundreds of thousands of {dollars} in GM inventory. The corporate knew in regards to the defective switches in 2005 however didn’t report it to federal authorities till 2014, officers stated, and hid the issues from buyers.

Automakers should notify the Nationwide Freeway and Site visitors Security Administration inside 5 days of discovering out a few security defect.

“Common Motors cheated California twice –- first by concealing a deadly flaw in its autos, then by concealing the details in regards to the flaw in its monetary disclosures, which affected the retirement investments of public servants throughout California,” Lawyer Common Xavier Becerra stated in an announcement. “This settlement lastly holds GM to account.”



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