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GM Pays Penalty

GM Pays PenaltyGM Pays Penalty

General Motors and the US Justice Department have reached a deal to end a government investigation into the firm’s failure to recall defective ignition switches, Reuters reported. The faulty parts had been linked to well over 100 deaths. GM agreed to pay $900 million and signed a deferred prosecution agreement after its improper handling of an ignition-switch defect linked to 124 deaths and many injuries. The deal means that General Motors will be charged criminally with hiding the defect from regulators and in the process defrauding consumers, but the case will be put on hold as long as GM fulfills the terms of the agreement.

 

Financialtribune.com