The defect in the GM ignition switches caused vehicles to move out of the run position to the accessory or off position, according to Beshear's office.In a crash, the vehicle's safety airbags may fail to deploy because of a loss of electrical systems.
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.
The Detroit News said GM will pay out a total of $120 million. "I'm glad to see Attorney General Shapiro standing up for us and our daughter and deeply appreciate this group of Attorneys General holding GM accountable for their corporate misconduct and defective vehicles".
"Like any other business - large or small - automakers have an obligation to represent the products they sell honestly, to ensure those products are safe, and to alert consumers when they discover a product defect that threatens consumer safety", New Jersey AG Porrino said. "In this case, our investigation involved allegations of deceptive practices around the safety of their motor vehicles".
Wasden said Thursday the automaker had reached the $120 million settlement with attorneys general of 49 states and the District of Columbia.
In 2014, General Motors issued seven recalls for key-rotation-related and/or ignition-switch-related issues, which impacted more than 9 million vehicles in the U.S.
"It is unacceptable for a company to knowingly hide significant safety concerns from the public", General Slatery said.
· GM shall not represent that a motor vehicle is "safe" unless the company complied with Federal Motor Vehicle Safety standards applicable to the motor vehicle at issue. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.
New York Attorney General Eric Schneiderman blasted the Michigan-based auto giant for having "turned a blind eye for years" to the defects that would have it cost pennies to correct.
Assistant Attorneys General Brendan Flynn and Lorrie Adeyemi, head of the Consumer Protection Department, assisted the Attorney General with this matter.