GM Case Over Handling of Ignition Switch Ends
September 20, 2018—A federal judge in New York on Wednesday dismissed a criminal case brought against General Motors Co. in 2015 over the largest U.S. automaker’s handling of an ignition-switch defect linked to 124 deaths, reported Insurance Journal.
U.S. District Judge Alison Nathan approved a request filed Monday by federal prosecutors to dismiss the two-count criminal information, according to the report.
In 2015, GM entered into a deferred prosecution agreement with the U.S. Attorney’s Office in New York after the Detroit automaker was charged with concealing information from government officials, and wire fraud. GM agreed to pay a $900 million fine and accept three years of oversight by an independent monitor.
GM has paid more than $2.6 billion in penalties and settlements, including the fine, over faulty ignition switches that could cause engines to stall and prevent airbags from deploying in crashes. The defect was linked to 124 deaths and 275 injuries, and prompted a recall that began in February 2014 of 2.6 million vehicles.
GM spokesman David Caldwell said in an emailed statement on Wednesday the government had finished monitoring the company.
According to Insurance Journal, no individuals were criminally charged, but Chief Executive Mary Barra fired 15 people, including eight executives, over the issue. Barra said last year the ignition recall was “a moment in time where the company committed deeply to safety.”