— A GM ignition switch settlement for nearly $6 million has been reached with the state of California to resolve allegations the automaker lied to investors about the cost related to the defective ignition switches.
California sued by claiming years passed while GM concealed the true expense and size of ignition switch recalls that would be required to make the vehicles safe.
California officials also allege General Motors knew the ignition switches were causing crashes, which caused the California Public Employees’ Retirement System to lose millions of dollars.
By concealing how bad the problem was and failing to gather the reserves for the upcoming losses, GM's actions allegedly artificially inflated its stock price.
The California ignition switch settlement is the latest settlement related to GM's yearslong fraud (2005-2014) of concealing defects that caused at least 124 deaths and 275 injuries.
After waiting nine years to admit the switches were defective, GM recalled millions of vehicles to replace ignition switches that could move out of their RUN positions while driving.
Without warning, vehicles suddenly lost power brakes, power steering and sometimes their airbags as the ignition switches were easily moved to their OFF or ACCESSORY positions.
Drivers were convicted of crimes related to crashes caused by the ignition switch defects while the automaker kept quiet about the defective components.
This is the second settlement between GM and California regarding the ignition switches. The automaker settled a multistate lawsuit in 2017 for $120 million, with $7 million of the settlement going to California for violations of consumer protection laws.