(Bloomberg) -- General Motors Co. will pay $900 million tosettle a criminal probe by the U.S. Justice Department over theignition switch flaw that has bogged down Chief Executive OfficerMary Barra in recalls and investigations since almost the start ofher tenure.
The settlement is part of a deferred-prosecution agreement underwhich the U.S. will monitor the automaker and the company mustcooperate with the government, federal prosecutors in New York saidThursday. No individuals were charged, while the company wasaccused of conspiracy and wire fraud. Those charges will remainpending for the next three years until the case is dismissed.
“GM admits that it failed to disclose to its U.S. regulator andthe public a potentially lethal safety defect that caused airbagnon-deployment,” according to an agreement that dates the scheme toApril 2006. “Nothing was done at this time to remedy the carsequipped with the defective switch that were already on theroad.”
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