General Motors Co. will pay $120 million to state attorneysgeneral to settle allegations the automaker concealed an ignition-switchdefect.

The settlement, announced Thursday, comes three years after GMissued recalls for more than 9 million vehicles in the U.S. for adefect that could cause cars to suddenly lose electrical systems,including power steering and power brakes. In some situations, airbags failed to deploy in a collision.

Related: GM rejected by Supreme Court, left to face ignitionclaims

The settlement benefits the attorneys general of 49states and the District of Columbia. Arizona did notparticipate.

Ensure safety of vehicles

“The resolution includes a financial component and assures GM willcontinue ongoing improvements made to ensure the safety of itsvehicles,” GM said in a statement. “These improvements includecontinuation of a new organizational structure devoted to globalvehicle safety and the company’s Speak Up for Safety program.”

GM previously paid about $2 billion to theDepartment of Justice, the Federal Trade Commission, consumers andshareholders. That amount includes nearly $600 million placedin a victims’ compensation fund overseen by Ken Feinberg. TheDetroit company filed for bankruptcy in 2009.

The states claimed GM employees knew as early as 2004 thatthe ignition switch could be a safety risk. But recalls weredelayed for years.

GM agreed as part of the settlement not to tell consumers avehicle is safe unless it meets federal motor vehicle safetystandards. Used vehicles may not be called “safe” or “subject torigorous inspection” unless there are no open recallsaffecting them, the agreement continues.

Recall repairs

The settlement also requires GM to instruct dealers to completerecall repairs before making a car eligible for certification ordelivering it to a customer.

The GM investigation and negotiation was led by theattorneys general of Connecticut, Florida, Maryland, Michigan, NewJersey, Ohio, Pennsylvania, South Carolina and Texas.

“Like any other business — large or small — automakers have anobligation to represent the products they sell honestly, to ensurethose products are safe, and to alert consumers when they discovera product defect that threatens consumer safety,” NewJersey Attorney General Christopher Porrino said in astatement. “When they fail to do so, as was the case with GM, weare committed to holding them accountable.”

The $120 million settlement includes $6 million for Florida,$4.3 million for New York, $4.1 million for New Jersey, $7.3million for Texas and $3.2 million for Connecticut.

'Chose to conceal the safety defects'

“Instead of prioritizing customers, General Motors turned ablind eye for years and chose to conceal the safety defectsassociated with several models of their vehicles,” NewYork Attorney General Eric Schneiderman said in astatement. “New Yorkers should not have to worry about theirsteering or brakes failing or their air bags not deploying whenthey get behind the wheel. Today’s settlement ensures that driversreceive the transparency they deserve when they purchase acar.”

Celia Ampel covers South Florida litigation for the DailyBusiness Review. Contact her at [email protected] or on Twitter at@CeliaAmpel.