GM reaches $120m settlement with states over switches

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DETROIT (AP) — General Motors Co. has reached a $120 million settlement with 49 states and the District of Columbia over its defective ignition switches.

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GM recalled 2.6 million small cars worldwide in 2014 because their ignition switches could slip from the “run” position to the “off” position, shutting off the engine.

The switches played a role in at least 124 deaths and 275 injuries, according to a victims’ fund set up by GM.

Every state but Arizona sued the Detroit-based automaker, saying it violated consumer protection laws by selling cars even though it knew for at least a decade that the switches were defective. The settlement concludes the state investigations.

GM said in addition to the state payouts, it pledged to continue to improve its vehicle safety efforts.