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General Motors to pay ME $1.1 million in lawsuit settlement

20 October 2017

The Iowa Attorney General's Office reports that GM will pay almost $1.5 million to the State of Iowa over allegations the automaker concealed safety issues related to ignition switch-related defects. The recalls involved a defective ignition switch that, under certain circumstance, could move out of the "run" position into the "accessory" or "off" position, causing electrical systems, including power steering and power brakes, to become inoperable.

The settlement comes after allegations were made that GM concealed safety issues regarding ignition-switch-related defects in GM vehicles. Those employees were transferred to GM when General Motors Corporation went bankrupt in 2009.

The states alleged that these actions were unfair and deceptive and that the automaker's actions violated state laws, including West Virginia's Consumer Credit and Protection Act.

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GM has paid compensation to the families of 124 people killed in crashes linked to the faulty switches. "General Motors and other automakers should keep their customers' safety at the forefront of everything they do", Wasden said in a statement.

The settlement, reached by the attorneys general of 49 states and the District of Columbia, concludes a multistate investigation into the auto manufacturer's failure to timely disclose known safety defects.

According to state investigators, GM allegedly knew certain vehicles had a safety defect with the ignition switch as of 2004 but delayed issuing a recall until 2014. In all, the settlement covers seven GM recalls in 2014 affecting more than nine million vehicles, multiple state attorneys general said.

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The company must also follow stricter guidelines before it can market a vehicle as "safe".

The problem involved several models and model years of GM vehicles.

New York Attorney General Eric Schneiderman said in a statement GM had "turned a blind eye for years and chose to hide the safety defects associated with several models of their vehicles".

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Assistant Attorneys General Brendan Flynn and Lorrie Adeyemi, head of the Consumer Protection Department, assisted the Attorney General with this matter.

General Motors to pay ME $1.1 million in lawsuit settlement