GM Agrees to Settle Shareholder Suit, Still Facing Hundreds of Claims Related to Faulty Ignition Switches
Recently, General Motors has faced significant scrutiny in the face of safety-related concerns stemming from their handling of ignition switch failures in several popular vehicle models. The issue occurred when an ignition would switch from the "run" to "off" position without warning, often while a vehicle took a significant bump in the road. As a result of the ignition turning off, airbags failed to deploy when the cars were involved in some collisions which led to substantial injuries and even several fatalities.
Federal investigators reviewed claims that GM engineers knew of the defect for years prior to the formal recall of these vehicles which occurred in February of 2014. As part of a Deferred Prosecution Agreement, GM agreed to pay $900 million in resolution of the claims brought against it by the government, but that did not begin to address the claims of consumers who were either injured by a faulty ignition switch or who lost a loved one in a crash, claims that could cost GM billions in additional funds.