General Motors unveiled the Cadillac Lyriq. Grady Trimble from FOX Business with more.
SACRAMENTO, California – General Motors Co. agreed to a $ 5.75 million deal with California over false statements the company made to investors about problems with its deadly ignition switches, state officials announced on Friday.
Defective ignition switches have led to 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 biggest recalls in the history of the country – of the largest automaker in the United States because the switches sometimes caused the sudden shutdown of electrical systems, including power steering and hydraulic brakes. .
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In 2015, GM agreed to pay a $ 900 million settlement to close a U.S. Department of Justice criminal investigation, as well as $ 1 million in 2017 for the U.S. Securities and Exchange Commission for an accounting case. Still that year, the automaker closed an agreement with dozens of states for US $ 120 million.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS COMPANY | 53.60 | +0.03 | + 0.06% |
GM did not admit any wrongdoing as part of the 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 deal came about because the state’s largest pension system, the California Civil Service Retirement System, lost millions of dollars in GM stock. The company knew about the defective switches in 2005, but did not report to federal authorities until 2014, officials said, and hid the problems from investors.
Automakers must notify the National Highway and Traffic Safety Administration within five days of finding out about a safety defect.
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“General Motors deceived California twice – first hiding a fatal flaw in its vehicles, then hiding the facts about the flaw in its financial disclosures, which affected public employee retirement investments across California,” said the attorney-general. general Xavier Becerra in a demonstration. “This agreement finally blames GM.”