GM Settlement Ends Multistate Investigation of Ignition Switch Problems
GM has agreed to complete all applicable recall repairs. The company in 2014 issued seven vehicle recalls, affecting 25 makes and models, in response to unintended key rotation-related and/or ignition switch-related issues that have affected more than 9 million vehicles in the United States
General Motors' $120 million settlement ends the investigation by numerous states into its alleged failure to disclose in a timely manner known safety defects associated with ignition switches in several models and model years, the attorneys general involved in the litigation announced late last week. New York Attorney General Eric T. Schneiderman said the settlement with 49 states and the District of Columbia will pay $4,331,339.27 to New York State. "Instead of prioritizing customers, General Motors turned a blind eye for years and chose to conceal the safety defects associated with several models of their vehicles," Schneiderman said. "New Yorkers should not have to worry about their steering or brakes failing or their airbags not deploying when they get behind the wheel. Today's settlement ensures that drivers receive the transparency they deserve when they purchase a car."
GM has agreed to complete all applicable recall repairs. The company in 2014 issued seven vehicle recalls, affecting 25 makes and models, in response to unintended key rotation-related and/or ignition switch-related issues that have affected more than 9 million vehicles in the United States, which could cause the ignition switch which to move out of the "Run" position to "Accessory" or "Off," which could cause the driver to experiences a loss of electrical systems and prevent the vehicle's airbags from deploying.
Schneiderman said the states alleged that some employees of GM and General Motors Corporation knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment. But they decided it wasn’t a safety concern and delayed making recalls, and GM continued to market the reliability and safety of its motor vehicles equipped with the defective ignition switch, he said.
The multistate group includes New York, Ohio, South Carolina, Connecticut, Florida, Maryland, Michigan, New Jersey, Pennsylvania, Texas, and also Alabama, Alaska, Arkansas, California, Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.