In this Tuesday, April 1, 2014, file photo, Sen. Edward J. Markey, D-Mass., displays a GM ignition switch similar to those linked to 13 deaths and dozens of crashes of General Motors small cars like the Chevy Cobalt, during a news conference on Capitol Hill in Washington. General Motors Co., has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday, Feb. 12, 2021. The faulty ignition switches led to at least 124 fatalities and 274 injuries nationwide. (AP Photo/J. Scott Applewhite, File)
SACRAMENTO, Calif. (AP) — General Motors Co. has agreed to a $5.75 million settlement with California regarding false statements the company made to investors about problems with its deadly ignition switches, state officials announced Friday.
The faulty ignition switches led to at least 124 fatalities and 274 injuries nationwide. The defect also resulted in the recall of more than nine million vehicles in 2014 — one of the biggest recalls in the nation's history — from the largest U.S. automaker because the switches sometimes caused the sudden termination of electrical systems, including power steering and power brakes.
In 2015, GM agreed to pay a $900 million settlement to end a U.S. Department of Justice criminal probe, as well as $1 million in 2017 to the U.S. Securities and Exchange Commission for an accounting case. Later that year, the automaker settled with dozens of states for $120 million.
GM did not admit any wrongdoing as part of the 2021 agreement with California.
"We are pleased to have cooperated with the State of California to resolve this matter," GM said in a statement Friday.
California's settlement came about because the state's largest pension system, the California Public Employees’ Retirement System, lost millions of dollars in GM stock. The company knew about the faulty switches in 2005 but failed to report it to federal authorities until 2014, officials said, and hid the problems from investors.
Automakers must notify the National Highway and Traffic Safety Administration within five days of finding out about a safety defect.
“General Motors cheated California twice –- first by concealing a fatal flaw in its vehicles, then by concealing the facts about the flaw in its financial disclosures, which affected the retirement investments of public servants across California,” Attorney General Xavier Becerra said in a statement. “This settlement finally holds GM to account.”
Featured Article: What is the Euro STOXX 50 Index?7 Stocks It May Be Time To Take Profits On
Should you or shouldn’t you? Many investors are wondering if it’s time to take some profit. With so much uncertainty in the market, there can be a temptation to take your profits and run. That may or may not be a good strategy. It’s true there are some speculative stocks that are going up on nothing but faith, trust, and pixie dust. But there are other stocks that may still be good buys despite continuing to grow.
Since the sell-off caused by the novel coronavirus and subsequent locking down of large portions of the economy, the stock market has recovered nearly all of its losses. The Federal Reserve has done its part by pledging to keep interest rates low for as long as it takes. New housing starts are up. Unemployment is coming down. There seems to be a lot of fuel for market bulls.
Still, if you’ve been holding one of the stocks in this presentation, it may be time for you to take some of the profits you’ve made. Many of the stocks in this presentation are being downgraded by analysts. And that means that there is likely to be downward pressure on the stock price.
View the "7 Stocks It May Be Time To Take Profits On"
Companies Mentioned in This Article
Compare These Stocks
Add These Stocks to My Watchlist