VA to receive almost $2.4 million in GM settlement
00:43, Oct 20, 2017
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General Motors Co. has agreed to pay $120 million to settle a state attorneys general probe of its mishandling of an ignition-switch defect, the latest financial hit to the Detroit auto giant over a safety crisis linked to numerous deaths and injuries.
CT served on the multistate investigation's nine-state executive committee.
In 2014, GM issued seven vehicle recalls in response to unintended key-rotation and ignition-switch issues, which have affected more than 9 million vehicles across the country. Despite that knowledge, GM personnel delayed issuing recalls, the release said.
The settlement spans across 49 states and the District of Columbia.
New York Attorney General Eric Schneiderman said in a statement GM had "turned a blind eye for years and chose to hide the safety defects associated with several models of their vehicles".
GM agreed in September 2015 to pay $900 million to settle the Justice Department probe, which resulted in prosecutors charging the auto maker with criminal wire fraud and scheming to hide a deadly safety defect from USA regulators.
The recalls involved a defective ignition switch that, under certain circumstances, could move out of the "run" position into the "accessory" or "off" position, causing electrical systems, including power steering and power brakes, to become inoperable.
DE will get $1.12 million for its consumer protection fund, according to Attorney General Matt Denn's office. GM continued to market the reliability and safety of its motor vehicles, which were equipped with the defective ignition switch.
The states alleged that these actions were unfair and deceptive and that the automaker's actions violated state laws, including West Virginia's Consumer Credit and Protection Act.
It led to 124 deaths and recalled more than 2.6 million cars. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.
The settlement is not final unless and until approved by the court.
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