GM Agrees To $5.75 Million Settlement With California in the Ignition Switch Scandal

During the weekend, General Motors announced that it had agreed to a $5.75 million settlement with the state of California over false statements that GM had told their investors about defective ignition switches.

According to government officials, GM had found out about the faulty switches in 2005, but did not report the problem to the National Highway and Traffic Safety Administration (NHTSA) until 2014. While GM hid the problem from the NHTSA, who need to be informed of auto defects by law within 5 days of finding the problem, the car company also hid the issue from investors.