GM Reaches $120M Settlement With 49 States Over Defective Ignition Switch

Maryland Attorney General Brian E. Frosh announced Thursday a settlement had been reached with General Motors Company, resolving allegations that the company knew about safety issues associated with its ignition switch, but chose to conceal them to consumers.

The settlement between the company, Frosh, 48 other attorneys general and the District of Columbia concludes an investigation into GM’s failure to disclose information about its defective ignition switches.

GM Saturn IonThe U.S. Supreme Court ruled in April that GM could no longer avoid hundreds of lawsuits from potential victims of ignition-switch defects, which cam before its bankruptcy.

“GM’s defective ignition switches put its customers’ lives at risk,” said Attorney General Frosh in a statement. “Even worse, we believe that after the defect was identified, GM delayed notifying owners of GM vehicles, jeopardizing the safety of its customers.”

GM issued seven recalls concerning ignition-switch-related and key-rotation-related issues. The recalls affected more than nine million vehicles nationwide. The recalls involved a defective ignition switch that could move from the “Run” position to the “Off” or “Accessory” position, causing a loss of the electrical systems, including power brakes and steering.

The defective switches left approximately 124 people dead and injured another 275 people in small GM models such as the Saturn Ion and Chevrolet Cobalt.

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