Verdicts & Settlements

GM agrees to pay $120M to settle multistate claims on faulty ignition switches

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Linda Parton/

General Motors has agreed to pay $120 million to settle claims by 49 states and Washington, D.C., over faulty ignition switches.

A GM spokesman confirmed the settlement after an announcement by New York Attorney General Eric Schneiderman and other state attorneys general, report Reuters and the Wall Street Journal (sub. req.). The Detroit News and the Detroit Free Press also have stories.

The consent judgment also requires GM to instruct its dealers that all recall repairs must be completed before selling a certified, pre-owned vehicle in the United States.

The faulty ignition switches could move from the “Run” position to the “Accessory” or “Off” position in certain conditions. The power loss could cause vehicles to stall and air bags to fail.

The state attorneys general had alleged GM personnel were aware of the problem as early as 2004, but they decided it wasn’t a safety concern and delayed making recalls. GM began recalls in February 2014.

GM has already paid about $2.5 billion in penalties and settlements for the faulty switches, according to Reuters. The automaker reached a $900 million settlement with the U.S. Justice Department in September 2015.

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