GM to Pay $120M in Multistate Defective Ignition Switch Settlement
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General Motors will pay $120 million to settle claims from dozens of states in its massive ignition switch defect scandal, reports The Detroit Free Press.
Earlier this year, the U.S. Supreme Court ruled that GM could no longer avoid hundreds of suits from victims of the defective ignition switches in accidents occurring before GM filed for Chapter 11 bankruptcy in 2009. according to reporter Eric D. Lawrence.
“The settlement is tied to violations of consumer protection laws and is on top of GM’s previous penalties and settlements of an estimated $2.5 billion, including $900 million to settle a U.S. Department of Justice criminal case,” Lawrence writes.
The settlement does not resolve federal multi-district litigation involving what has been reported as possibly hundreds of plaintiffs.
