GM Gets Criminal Charges and Deferred Prosecution with $900 Million Forfeiture

On September 17, 2015, the U.S. Attorney for the Southern District of New York, Preet Bharara, announced a settlement with General Motors concerning the investigation of a dangerous defect in an ignition switch that could result in the disabling in frontal airbags. Under the settlement, General Motors agreed to forfeit $900 million. GM will be charged with one count of wire fraud, but the prosecution would be deferred. GM also agreed to oversight by an independent monitor. Press reports indicate that there no individuals would be prosecuted.

— James R. Wyrsch, Wyrsch Hobbs & Mirakian, P.C., Kansas City, MO

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