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GM Settles Criminal Case for Faulty Ignition Switch

Posted on behalf of Harbin & Burnett on Sep 22, 2015 in Defective Products

General Motors logoAuto giant General Motors (GM) has settled with prosecutors regarding the faulty ignition switches that have contributed to the deaths of 124 victims to date. As a part of deferred prosecution, GM must pay a $900 million penalty and comply with monitoring of their safety practices over the next three years. If GM complies with the agreement for three years, criminal charges will be dropped.

GM has admitted they were aware of the ignition switch issue for almost a decade before issuing a recall. This knowledge is the foundation for the criminal charges against the company, which failed to report the defect in their vehicles for more than a decade.

Families of the victims feel the settlement is not adequate. They have expressed disappointment that individual GM executives are not being charged. Preet Bharara, U.S. Attorney, states that charges could be pressed against individuals in the future as the investigation progresses.

A settlement has also been agreed upon in the civil class action case against GM regarding deaths and injuries resulting from the faulty ignition switches and other recall issues. The amount of the settlement has not been disclosed. GM has already created a compensation fund for the payment of victims families as well as injured victims.

In light of these issues, GM has altered how they deal with recalls. To comply with settlement terms, GM will hire an independent monitor to oversee the recall process. A phone service will also be established to take anonymous complaints. The monitor will also work to ensure that GM complies with federal regulations regarding safety reporting.

If you have been injured in an accident due to a defective product, Harbin and Burnett, can help you determine your legal options.

Contact us today at 1.888.821.0247 for a free case evaluation.

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