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SACRAMENTO, California – General Motors Co. has agreed to a $ 5.75 million settlement with California over false statements the company has made to investors about problems with its deadly contact switches, state officials announced Friday.
The faulty contact switches resulted in at least 124 deaths and 274 injuries across the country. The defect also resulted in the recall of more than nine million vehicles in 2014 – one of the largest recalls in the country’s history – from the largest US automaker, as the switches sometimes caused the sudden discontinuation of electrical systems, including power steering and power brakes. .
GENERAL ENGINES MUST GO FULLY ELECTRICAL BY 2035
In 2015, GM agreed to pay a $ 900 million settlement to end a U.S. Department of Justice criminal investigation, and in 2017, $ 1 million to the U.S. Securities and Exchange Commission for an accounting file. Later that year, the automaker settled for $ 120 million with dozens of states.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| GM | GENERAL ENGINE COMPANY | 53.60 | +0.03 | + 0.06% |
GM did not admit wrongdoing as part of its 2021 agreement with California, and the company’s media representatives did not immediately respond to a request for comment on Friday.
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The California settlement came about because the state’s largest retirement system, the California Public Employees’ Retirement System, lost millions of dollars in GM stock. The company was aware of the faulty switches in 2005 but was only able to report it to federal authorities in 2014, officials said, hiding the problems from investors.
Automakers must notify the National Highway and Traffic Safety Administration within five days of discovering a safety fault.
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“General Motors has defrauded California twice – first by hiding a fatal flaw in its vehicles, and then by hiding the facts about the flaw in the financial disclosures that affected officials’ retirement investments across California,” said Attorney General Xavier Becerra in a ruling. “This settlement finally puts GM to account.”