WASHINGTON(Reuters) - General Motors has agreed to pay $120 million to resolve claims from 49 U.S. states and the District of Columbia over faulty ignition switches, state attorneys general and the company said on Thursday. The largest U.S. automaker had previously paid about $2.5 billion in penalties and settlements over faulty ignition switches that could cause engines to stall and prevent airbags from deploying in crashes. The defect has been linked to 124 deaths and 275 injuries, and prompt
Gm Ignition Switch Recall
This all stems from the GM ignition switch recall.
This fine is a drop in the bucket compared to the total costs of the ignition switch scandal.
In the wake of the General Motors safety crisis, the mother of one ignition-switch victim is working with lawmakers to ensure motorists receive more information on vehicle defects from dealerships.
A civil trial over defective ignition switches will begin January 11, and the case's outcome could decide if the automaker will fight other suits.
General Motors paid out $594.5 million in its ignition switch claims resolution program, and on average the people with eligible cases got $1.5 million.
A District Court Judge rules that attorney-client privilege protects certain documents between GM and law firm King & Spalding over the ignition switch defect.
The US Department of Transportation has decided to extend its regulatory supervision over General Motors for an additional year. The government agency believes that the oversight is a proactive way to address possible safety defects.
The attorneys at the GM Ignition Compensation Claims Resolution Facility are now reporting a total of 90 confirmed deaths and 163 injuries in their latest progress report.
In the latest tally released by the General Motors Ignition Compensation Claims Resolution Facility, the number of cases offered compensation for fatalities has risen to 74 people. There have also been 126 injuries linked to the automaker's faulty part.
General Motors received 75 more claims from people about the automaker's faulty ignition switches. The number of eligible claims jumped up by 12, including four more for deaths and eight more for injuries.
Michael Mikkikin, the general council for General Motors, announced his retirement from the automaker last year. However, he now might not leave until July, while the company searches for a successor.
The General Motors ignition switch compensation fund received 57 more reports this week that were postmarked before the January 31 deadline. The number of accepted claims ticked up slightly by one additional death and two more injuries.
As the appeal process closes for General Motors' ignition switch recall compensation fund, the tally of claims stands at 4,180. That number might climb, though, because claims postmarked January 31 are still being accepted. As of the latest total, the attorneys found 51 deaths and 77 injures caused by the faulty parts.