GM Said to Settle Criminal Case Over Ignition Switches
Federal prosecutors are set to announce a settlement with General Motors that resolves a criminal investigation into how the Detroit automaker concealed a deadly problem with small-car ignition switches, according to three people briefed on the case.
Under the deal, GM will pay a fine of around $900 million in a deferred prosecution agreement on a wire fraud charge.
Last year GM recalled 2.6 million older small cars worldwide such as the Chevrolet Cobalt and Saturn Ion to replace the faulty switches, which can unexpectedly slip out of the run position to off or accessory.
The problem caused crashes that killed at least 124 people and injured 275 more, according to lawyers in charge of a fund set up by GM to compensate victims.
Under the deal, GM will pay a fine of around $900 million in a deferred prosecution agreement on a wire fraud charge.
Last year GM recalled 2.6 million older small cars worldwide such as the Chevrolet Cobalt and Saturn Ion to replace the faulty switches, which can unexpectedly slip out of the run position to off or accessory.
The problem caused crashes that killed at least 124 people and injured 275 more, according to lawyers in charge of a fund set up by GM to compensate victims.