Sep 17, 2015 06:46 PM
(This post was last modified: Sep 17, 2015 06:48 PM by Magical Realist.)
"General Motors Co (GM.N) admitted it hid from the government and the public a lethal defect in its vehicle ignition switches, and agreed to pay $900 million to end a U.S. criminal probe over its problem, which has been linked to 124 deaths.
The settlement announced on Thursday caps a two-year probe that tainted GM's reputation and transformed the Detroit-based automaker's relationship with the federal government, which had bailed it out during the recent financial crisis.
GM also agreed to a partial settlement of private litigation with drivers, passengers and families over the switches, and a settlement of related shareholder litigation.
The largest U.S. automaker will take a $575 million third-quarter charge for the private accords. It was not immediately clear how it will account for the $900 million criminal penalty.
In the criminal case, prosecutors accused GM of scheming to conceal material facts from a U.S. regulator, and wire fraud.
GM admitted to failing to disclose a potentially lethal safety defect with the switches that kept some air bags from deploying. It also admitted to misleading consumers about the safety of vehicles affected by the defect.
In settling with the government, GM entered into a three-year deferred prosecution agreement that requires an independent monitor to oversee its practices, including its ability to fix defects and handle recalls. The criminal charges will be dropped if GM meets its obligations under that agreement."====http://www.reuters.com/article/2015/09/1...WF20150917
The settlement announced on Thursday caps a two-year probe that tainted GM's reputation and transformed the Detroit-based automaker's relationship with the federal government, which had bailed it out during the recent financial crisis.
GM also agreed to a partial settlement of private litigation with drivers, passengers and families over the switches, and a settlement of related shareholder litigation.
The largest U.S. automaker will take a $575 million third-quarter charge for the private accords. It was not immediately clear how it will account for the $900 million criminal penalty.
In the criminal case, prosecutors accused GM of scheming to conceal material facts from a U.S. regulator, and wire fraud.
GM admitted to failing to disclose a potentially lethal safety defect with the switches that kept some air bags from deploying. It also admitted to misleading consumers about the safety of vehicles affected by the defect.
In settling with the government, GM entered into a three-year deferred prosecution agreement that requires an independent monitor to oversee its practices, including its ability to fix defects and handle recalls. The criminal charges will be dropped if GM meets its obligations under that agreement."====http://www.reuters.com/article/2015/09/1...WF20150917
