General Motors Settles False Statements Made to California’s Pension System for $5.75M
General Motors Co agreed to a $5.75 million settlement to resolve allegations it made false statements to California’s largest pension system and other investors over its deadly ignition switch recall.
California Attorney General Xavier Becerra said the largest U.S. automaker concealed problems from investors related to faulty ignition switches linked to 124 deaths and 275 injuries
GM failed to build reserves for losses it knew were coming, Becerra said, which artificially inflated GM’s stock price and caused the California Public Employees’ Retirement System or CalPERS to lose millions of dollars.
GM previously paid about $2.6 billion in total penalties and fines tied to the ignition switch issue, including $900 million to settle a U.S. Justice Department criminal investigation and $1 million to resolve a U.S. Securities and Exchange Commission accounting case.
