GM settles California suit over alleged defects concealment (Report)

Ignition switch of a 2005 Chevrolet Cobalt

 (AP)

General Motors has agreed to a $13.9 million settlement with Orange County, California, after prosecutors accused the auto giant of concealing serious safety defects to avoid costly recalls and part replacements.

The lawsuit, filed in 2014, accused GM of deceptive business practices and unfair competition. It alleged the automaker marketed its brand as safe and reliable while failing to disclose defects including power steering, air bag and brake problems. As a result of the failures, at least 124 people died and 275 were injured, according to the Orange County Register .

Earlier this month, GM agreed to pay $120 million to resolve claims from 49 states and the District of Columbia over faulty ignition switches. The California Attorney General’s Office received $7 million in the settlement.

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