General Motors Co. has reached a settlement in the form of a Deferred Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York in its handling of the widely publicized ignition switch defect that is connected in approximately 174 deaths.
Under the Agreement, the U.S. Attorney’s Office agrees to defer prosecution of charges against GM related to the ignition switch defect and recall for three years. If GM satisfies the terms of the agreement, federal prosecutors will then seek dismissal of the charges with prejudice.
The Agreement includes a requirement that GM cooperate with the federal government and establish an independent monitor to review and assess the company’s policies and procedures in certain discrete areas relating to safety issues and recalls. GM also will pay a $900 million fine.
The agreement states that the government’s decision to defer prosecution was based on the actions GM has taken to “demonstrate acceptance and acknowledgement of responsibility for its conduct,” including:
- Conducting a swift and robust internal investigation
- Furnishing investigators with information and a continuous flow of unvarnished facts
- Providing timely and meaningful cooperation more generally in the government’s investigation
- Terminating wrongdoers
- Establishing a full and independent victim compensation program that is expected to pay out more than $600 million in awards
“Reaching an agreement with the Justice Department does not mean we are putting the issue behind us,” said GM’s Mary Barra. “Our mission has been to take the difficult lessons from this experience and use them to improve our company. We’ve come a long way and we will continue to build on our progress.”
