General Motors settles with California for $ 5.75 million in a win for the state pension fund

Sacramento, California – General Motors Corporation. The company agreed to a $ 5.75 million settlement with California regarding false statements the company made to investors about fatal ignition switch problems, state officials announced Friday.

Faulty ignition switches have resulted in at least 124 deaths and 274 injuries nationwide. The defect also resulted in the recall of more than 9 million vehicles in 2014 One of the largest recalls in the nation’s history – from the largest auto maker in the United States because switches sometimes caused the sudden terminations of electrical systems, including power steering and power brakes.

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In 2015, GM agreed to pay a $ 900 million settlement to end a criminal investigation of the US Department of Justice, plus $ 1 million in 2017 for the United States. Securities and Exchange Commission For an accounting case. Later that year, the automaker settled with dozens of nations for $ 120 million.

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GM did not acknowledge any wrongdoing as part of the 2021 agreement with California, and media representatives for the company did not immediately respond to a request for comment on Friday.

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The California settlement came because the state’s largest pension system, the California Public Employees Retirement System, lost millions of dollars in GM stock. Officials said the company was aware of the defective switches in 2005 but failed to report them to federal authorities until 2014, hiding the problems from investors.

Automobile manufacturers must notify the National Highway Traffic and Traffic Safety Administration within five days of discovering a safety defect.

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“General Motors fooled California twice – first by hiding a critical flaw in its cars, then by concealing facts about the flaws in its financial disclosures that affected retirement investments for public servants across California,” said Attorney General Xavier Becera. statement. “This settlement finally holds General Motors accountable.”

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