GM Saddled with Probation and Heavy Fine for Criminal Charges

Over the past decade, General Motors knew of faulty ignition switch problems associated with several of its models that were being sold to the public. At least 124 deaths resulted from GM withholding with their knowledge and not recalling said vehicles.

The issue with the faulty ignition switches was that they caused the vehicles to spontaneously shut off and in return disabled the airbags, power steering and brakes.

While there is no law that states a person or business cannot sell a defective car, there is a law that says they must report the issues. GM did not report the defects until many people were hurt and killed.

No individual executives are being charged at this time, but General Motors is facing criminal charges. Although the Justice Department deferred prosecution, they placed the company on three years probation and gave a heavy fine.

The criminal charges may be dropped at the end of the probation period if GM continues to cooperate with federal authorities during that time.

 

Resource: http://money.cnn.com/2015/09/17/news/companies/gm-recall-ignition-switch/

Be the first to comment!
Post a Comment