General Motor Co. is said to be settling a criminal probe by the U.S. Justice Department for $900 million over the ignition switch flaw that has bogged down Chief Executive Officer Mary Barra in recalls and investigations since almost Day 1 of her tenure, Bloomberg News reported yesterday. The settlement will be part of a deferred prosecution agreement. The agreement, which may be announced today, will allow the U.S. to monitor the automaker for three years. The U.S. will say that GM failed to obey federal laws requiring prompt disclosure of safety problems, and no individuals will be charged. GM will also face a charge of wire fraud.
