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GM Settles $900 Million Lawsuit With Justice Department
by Fusion 360 Studios Digital Marketing SpecialistsDrivers in Bountiful, Utah and across the country are celebrating, as GM has finally settled a lawsuit brought on by the Justice Department over the now-proven fact that GM ignored an easily fixable, faulty ignition switch, which was installed in multiple car models for over a decade.
The faulty switches led to the deaths of 124 people, and according to the New York Times, is the product of “a corporate culture that seemed to prize inaction and deflection.” This culture has also attracted the local auto accident lawyer, as GM has also set aside $575 million for personal settlements to victims and their families.
The switches, which would have cost General Motors less than one dollar per car to fix, were ignored for that very reason—cost. It is ironic considering the fact that it would have been much more cost-effective to save lives than it was to give over $1 billion to the American government, the local auto accident lawyer and victims of the faulty switch.
Dispatch Times reports that the faulty switch was installed in models such as the Chevrolet Cobalt and HHR, Pontiac G5 and Solstice and the Saturn Ion. While the lawsuit could have potentially covered the 10-15 years of GM’s ignorance, its 2009 bankruptcy and subsequent government bailout protects GM from litigation pertaining to actions committed before 2009.
The Dispatch Times also reports that General Motors will be charged criminally on the grounds that it hid information from regulators and defrauded consumers by telling them that the cars were safe. The government is allowing GM to enter a plea of not guilty if they “fix their recall process,” a plea that many a Bountiful-area auto accident lawyer may have something to say about.
This isn't the first time an auto company has been handed down a massive fine for ignoring safety issues. Toyota recently received a $1.2 billion fine for covering up defects that caused cars to suddenly accelerate. It was a year where drivers in Bountiful and across the country had good reason to be on edge.
The criminal charges have nothing to do with the deaths of the 124 drivers or the countless others injured; instead they are related to the covering up of the faulty switches from the government. While this may seem like an unsatisfactory outcome, there are still plenty of private suits that have yet to be resolved.
If you believe that you or someone if your family was injured or died in an accident caused by the faulty ignition switch, it is important to contact your Bountiful-area auto accident lawyer immediately.
Ian Carry is a legal writer reporter for Fusion 360, an SEO and content marketing agency. Information provided by Robert J Debry. Follow on Twitter
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