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GM settles with U.S. for $900 million

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Last Updated: 02-08-2022
Last Updated: 02-08-2022
Written by: Michael A. Rose and Gregory Hach

GM settles with U.S. for $900 million

Posted on Wednesday, September 30th, 2015 at 6:21 pm    

United States attorney for the Southern District of New York, Preet Bharara, announced on Thursday, September 17 that the United States government has settled with Michigan-based automaker General Motors Co. for the sum of $900 million as penalty for their vehicles’ defective ignition switches.

According to Bharara, the settlement was reached so quickly, after only 18 months, because “the top management came forward to disclose the defect in February of 2014, the company’s cooperation and remediation have been fairly extraordinary.” Bharara went on to compare GM’s behavior with that of Japanese automaker Toyota Motor Corp., which took over four years to settle its case with the government over its vehicle defect.

Bharara stressed that private individuals affiliated with GM could still be charged regarding the defect, noting that two GM employees in particular have been identified as having a major role in concealing information about the ignition switch defect from federal regulators.

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