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General Motors Reaches Settlement With CA

General Motors is agreeing to a nearly $6 million settlement with the State of California.

It stems from false statements the company made to investors about problems with its deadly ignition switches. The faulty ignition switches led to at least 124 deaths and 274 injuries nationwide. The defect also resulted in the recall of more than 9 million vehicles in 2014 because the switches sometimes caused the sudden termination of electrical systems, including power steering and power brakes.

California's settlement came about because the state's largest pension system, the California Public Employees' Retirement System, lost millions of dollars in GM stock. State officials say the company knew about the faulty switches in 2005. but failed to report it to federal authorities until 2014 and hid the problems from investors.

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