Thursday, September 17, 2015

Massive Fine Against GM For Ignition Defect Fraud Announced

Originally published by William K. Berenson.

Ignition Switch -- GM, G.M., General Motors

Deferred Prosecution Is Hardly Justice for the Crash Victims

General Motors has reached a $900 million settlement with federal prosecutors on criminal wire fraud charges. The criminal charges stem from the company’s willlful coverup of the ignition switch flaw that killed at least 124 people, injured hundreds more, and caused the largest recall in automotive history.

However, the GM deferred prosecution agreement means the company does not have to plead guilty to the charges, which was a bonus for GM officials. And the settlement falls short of the record of $1.2 billion paid by Toyota for concealing the unintended acceleration of its vehicles. 

Individual Employees Go Untouched

No GM employees will face criminal charges for their part in hiding the dangerous ignition switch problems. Instead, the FBI found that “the problems stemmed from a collective failure by the automaker,” according to the New York Times

 

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.



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