Nevada Attorney General Adam Laxalt said 49 states plus the District of Columbia settled a multistate investigation into General Motor's "failure to disclose known safety defects."
Laxalt said the $120 million settlement resolved the investigation into the time it took for the company to notify motorists of the issue associated with the ignition switch or key rotation-related issues in several vehicles.
The states alleged that certain employees of GM and General Motors Corporation, which went through bankruptcy proceedings in 2009, knew as early as 2004 that the switch posed a safety defect. Despite knowing this, employees decided it was not a safety concern, delayed making recalls, and continued to market the safety and reliability of the vehicles.
GM issued recalls on seven vehicles in 2014 in response to the issue.
Laxalt said Nevada will receive about $1.4 million from the settlement. In addition, GM will not be allowed to market vehicles as "safe" unless it has complied with the Federal Motor Vehicle Safety standards as it is applicable to the vehicle.
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