NEW YORK (AP) — General Motors admitted it
failed to disclose to the public a deadly
problem with small-car ignition switches as part
of a $900 million deal reached with federal
authorities to avoid criminal charges,
authorities announced Thursday.
The automaker will retain an independent
monitor to review and assess its policies to
ensure compliance with the agreement with the
government, according to court papers released
by U.S. Attorney Preet Bharara in Manhattan.
The prosecutor planned a noon news conference
Thursday to formally announce the deal. Court
papers pertaining to it were signed Wednesday.
Besides the $900 million forfeiture and the
monitor, the deal calls for two criminal charges
to be dismissed if the company complies with
terms of the agreement for three years. The $900
million must be paid by Sept. 24.
The two-count criminal information accuses GM
of wire fraud and scheming to conceal material
facts from a government regulator.
Last year, GM recalled 2.6 million older
small cars worldwide to replace the faulty
switches. Those included the Chevrolet Cobalt
and Saturn Ion.
The faulty switches can unexpectedly slip out
of the run position to off or accessory. That
shuts off the engine and disables power-assisted
steering, power brakes and the air bags.
The problem caused crashes that killed at
least 124 people and injured 275 more, according
to lawyers in charge of a fund set up by GM to
compensate victims. Families of those who died
will get at least $1 million. GM has set aside
$625 million to compensate people who accept a
settlement with the fund. GM also faces multiple
lawsuits related to the problem.