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General Motors to pay ME $1.1 million in lawsuit settlement

General Motors to pay ME $1.1 million in lawsuit settlement”

Family members of 21-year-old of Kelly Ruddy joined officials Thursday for the announcement of a $120 million settlement with General Motors and 49 states over defective ignition switches. The settlement concludes the state investigations.

GM issued seven recalls related to the issue in 2014, but state investigators charged the company knew as early as 2004 that the defective ignition switch posed a safety threat.

"We're holding General Motors accountable for misleading consumers about the safety of their cars and changing their corporate behavior so public safety comes first", Pennsylvania AG Shapiro said in a news release announcing the settlement between GM and 49 state attorneys general and the District of Columbia.

Under the settlement, GM will declare a motor vehicle safe only if it has complied with federal motor vehicle safety standards. GM began recalls in February 2014. The ignition switch defect, which allowed the key to inadvertently move to the "off" position and disable air bags, ultimately was tied to 124 deaths and hundreds of injuries.

Maintain a Vehicle Safety Owner Engagement Team to improve and enhance recall awareness to auto owners with open recalls - GM has to provide a report within 60 days after the one-year anniversary of this agreement summarizing their efforts. "In this case, our investigation involved allegations of deceptive practices around the safety of their motor vehicles". If there is a recall on any certified pre-owned vehicle sold in the US, the required fix must be completed before the vehicle is delivered to a consumer.

"Among its other functions, the Global Product Integrity organization will establish processes to identify and resolve potential safety issues in the design of GM Motor Vehicles and using Design for Failure Mode and Effect Analysis (or its functional equivalent) and/or strategies selected by GM to achieve the same or similar results", the consent order states.

Assistant Attorneys General Brendan Flynn and Lorrie Adeyemi, head of the Consumer Protection Department, assisted the Attorney General with this matter.



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