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GM to Pay $120 Million in Multistate Defective Ignition Switch Settlement

Submitted by jhartgen@abi.org on

General Motors will pay $120 million to settle claims from dozens of states in its massive ignition switch defect scandal, the Detroit Free Press reported today. The settlement announced yesterday comes after the U.S. Supreme Court ruled earlier this year that GM could no longer avoid hundreds of lawsuits from victims of the defective ignition switches in accidents occurring before GM filed for chapter 11 protection in 2009. Altogether the scandal left at least 124 people dead and 275 injured in small cars such as the Chevrolet Cobalt and Saturn Ion that were made by the old GM. The defective ignition switches could cause vehicles to stall, and GM recalled more than 2.7 million vehicles in 2014.