Conn. Joins $120M Settlement with General Motors over Defective Ignition Switch

Attorney General Adam Laxalt is shown in an undated image

Under terms of the settlement, which included 49 states and the District of Columbia, GM agreed that all recall repairs must be completed before its certified pre-owned vehicles can be advertised as safe.

MI will be getting more than $4.2 million from General Motors as part of a multi-state settlement over faulty ignition switches.

The states alleged that the automaker's actions were unfair and deceptive in violation of state consumer protection laws, including Maine's Unfair Trade Practices Act. It led to a 2014 recall of almost 2.6 million older cars.

Hawley said an investigation found that if the issues were to a happen, a driver could experience a loss of electrical systems, including power steering and power brakes.

The 49 states involved in the settlement said certain employees at General Motors knew of the issues as early as 2004, but decided it wasn't a major safety concern, delaying recalls.

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Laxalt said the $120 million settlement resolved the investigation into the time it took for the company to notify motorists of the issue associated with the ignition switch or key rotation-related issues in several vehicles.

More than $4 million in settlement money will go to NY.

Under the settlement, GM dealers must not sell certified pre-owned vehicles with uncompleted recalls, and is required to have a team to "improve and enhance recall awareness to auto owners with open recalls". In all, the settlement covers seven GM recalls in 2014 affecting more than nine million vehicles, multiple state attorneys general said.

The settlement also provides that GM not represent that a vehicle is "safe" unless they have complied with the Federal Motor Vehicle Safety standards to the motor vehicle at issue. If there is a recall on any certified pre-owned vehicle sold in the USA, the required fix must be completed before the vehicle is delivered to a consumer.

In a December 2015 final report, the company's independent compensation consultant linked 124 deaths and 275 injuries nationwide to the recalled switches.

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