Connect with us

American News

GM settles California suit over alleged defects concealment

Published

on

“We must protect our consumers from businesses that put profits over people by keeping cars on roads safe and avoiding preventable accidents,” District Attorney Tony Rackauckas said in a statement.  (Photo: Tony Rackauckas/Twitter)

“We must protect our consumers from businesses that put profits over people by keeping cars on roads safe and avoiding preventable accidents,” District Attorney Tony Rackauckas said in a statement. (Photo: Tony Rackauckas/Twitter)

SANTA ANA, Calif. — General Motors has agreed to a $13.9 million settlement with Orange County, California, after prosecutors accused the auto giant of concealing serious safety defects to avoid costly recalls and part replacements.

The lawsuit, filed in 2014, accused GM of deceptive business practices and unfair competition. It alleged the automaker marketed its brand as safe and reliable while failing to disclose defects including power steering, air bag and brake problems. As a result of the failures, at least 124 people died and 275 were injured, according to the Orange County Register .

Earlier this month, GM agreed to pay $120 million to resolve claims from 49 states and the District of Columbia over faulty ignition switches. The California Attorney General’s Office received $7 million in the settlement.

In a Friday statement obtained by the Register, the company said: “GM has reached a constructive settlement with Orange County, Calif. to resolve claims filed by the Orange County district attorney regarding the company’s advertising of vehicles that were subject to certain recalls in 2014, including the ignition-switch recall.”

Prosecutors said GM trained its staff to never use the words “defect” or “stall” and routinely chose the “cheapest part supplier without regard for safety.” The lawsuit said the company also discouraged employees from addressing safety issues, according to the newspaper.

Over five months in 2014, GM was forced to recall 17 million vehicles in 33 recalls for various defects, officials said.

“Since 2014, GM has taken important steps to help ensure the safety of its vehicles, including a new organizational structure dedicated to global vehicle safety and a robust Speak Up for Safety program,” the company’s statement added.

The settlement in Orange County was approved by a judge on Friday.

“We must protect our consumers from businesses that put profits over people by keeping cars on roads safe and avoiding preventable accidents,” District Attorney Tony Rackauckas said in a statement. “We must also encourage all businesses to be fair and live up to safety standards, and must not allow those engaging in unfair practices to punish those businesses that don’t cut corners by compromising safety.”

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Oil Well Oil Well
Business and Economy11 mins ago

Oil prices up following strong demand, Middle East strife

ANKARA – Oil prices increased on Friday due to strong US demand and rising tensions in the Middle East. International...

News27 mins ago

Israel to present new deal to Hamas for prisoner swap – report

JERUSALEM – Israel has revealed a new proposed deal for a prisoner exchange with Hamas and a ceasefire in the...

News37 mins ago

Earth’s rotation slowing, making days longer, scientists say

ISTANBUL – Recent data from atomic clocks showed the Earth’s rotational speed may be slowing, leading to longer days, according...

Headline41 mins ago

No ‘paradigm shift’ to avert famine looming in Gaza: WFP

HAMILTON, Canada – The UN on Wednesday warned about the risk of famine looming in the northern Gaza Strip in...

Man in White Dress Shirt Standing Beside Woman in Pink Long Sleeve Shirt Man in White Dress Shirt Standing Beside Woman in Pink Long Sleeve Shirt
Instagram1 day ago

What kind of diner are you? 6 types of diners who avoid plant-based meat dishes

Imagine having dinner at a restaurant. The menu offers plant-based meat alternatives made mostly from vegetables, mushrooms, legumes and wheat...

Art and Culture1 day ago

Coast Salish Canoe Culture comes to the Vancouver Maritime Museum

The Vancouver Maritime Museum is delighted to announce their latest exhibition from local səlil ̕wətaʔɬ and Sḵwx̱wú7mesh artist, Zoe George....

Education1 day ago

TD and ApplyBoard Collaborate to Support Filipino Students Pursuing Studies in Canada

New relationship to help students planning on studying in Canada prepare their finances and expedite their study permits TD and...

Community News1 day ago

Filipino Community Leaders Celebrate the Federal Funding Commitment for a Filipino Community Cultural Centre in BC

Vancouver, BC — Filipino community leaders and New Democrat Finance Critic MP Don Davies celebrated together the historic inclusion of...

Community News1 day ago

Emaciated dachshund found trapped in carrier down embankment getting the care he desperately needs

The starved dachshund was found by a Good Samaritan who was driving his truck to get to mountain bike trails...

Entertainment1 day ago

“Summer For Reel” brings JoshLia’s “Love You to the Stars and Back” in Boracay

With acoustic performances from Maki, Angela Ken, and Bugoy Drillon Beat the heat with this summer’s must-see outdoor screening event,...

WordPress Ads