Indiana to Share in GM Settlement

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Indiana Attorney General Curtis Hill (file photo) Indiana Attorney General Curtis Hill (file photo)

The state of Indiana is participating in a $120 million settlement with General Motors Co. (NYSE: GM) over allegations the auto manufacturer concealed safety issues related to ignition switch defects. Indiana Attorney General Curtis Hill says the state will receive approximately $2.1 million..

The settlement was reached between the attorneys general of 49 states and the District of Columbia and GM. It states the automaker failed to timely disclose known key rotation-related or ignition switch-related issues affecting more than nine million GM vehicles.

GM issued seven vehicle recalls in 2014, saying the defects could cause drivers to lose electrical systems, including power steering and power brakes, as well as a potential loss of airbag deployment if a crash were to occur. Hill's office says the states alleged that certain GM employees knew of the defects as early as 2004 but delayed making recalls.

"Corporate irresponsibility puts real people at risk," Hill said in a news release. "This failure by GM to disclose known safety issues is inexcusable. We expect our corporate citizens to serve customers with integrity and forthrightness rather than shoddiness and deception."

As part of the settlement, GM must comply with Federal Motor Vehicle Safety standards before deeming a vehicle "safe," instruct dealers to complete any applicable recall repairs before any GM vehicle is sold in the U.S., and pay a total of $120 million.

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