Business
GM Will Pay $900 Million over Ignition Switch Scandal

U.S. Attorney Preet Bharara speaks during a news conference at the U.S. Attorney’s office in New York, Thursday, Sept. 17, 2015. (AP Photo/Kathy Willens)
Tom Hays and Tom Krisher, ASSOCIATED PRESS
NEW YORK (AP) — General Motors agreed to pay $900 million to fend off criminal prosecution over the deadly ignition-switch scandal, striking a deal that brought criticism down on the Justice Department for not bringing charges against individual employees.
The switches, which can slip out of the “run” position and cut off the engine, have been linked to at least 169 deaths.
Despite evidence that GM’s legal and engineering staffs concealed the problem for nearly a decade, no employees were charged Thursday, though U.S. Attorney Preet Bharara said the investigation is still going on.
Also Thursday, GM announced it will spend $575 million to settle the majority of the civil lawsuits filed over the scandal.
Under the deal with prosecutors, an independent monitor will be appointed to oversee GM’s handling of safety problems. Two charges drawn up against GM— wire fraud and scheming to conceal information from government regulators — will be dropped after three years if the automaker cooperates fully.
GM agreed to a statement of facts that describes in scathing terms its deceptive and dismissive approach to the defect.
“They let the public down,” Bharara said. “They didn’t tell the truth in the best way that they should have — to the regulators, to the public — about this serious safety issue that risked life and limb.”
The twin agreements bring to more than $5.3 billion the amount GM has spent on a problem authorities say could have been handled for less than a dollar per car. Those expenses include fines, compensation for victims and the recall of millions of vehicles.
With the settlements, GM takes a big step toward moving past the scandal.
On Thursday, GM chief executive Mary Barra appeared before several hundred employees in suburban Detroit and again apologized to the crash victims. When asked whether employees should have been charged, she deferred to Bharara’s office.
But she added: “We understand that lives were impacted. That is something that we understand and we take forward and will have with us every day.”
The settlement brought bitter criticism from safety advocates and family members.
Consumer advocate Clarence Ditlow, head of the nonprofit Center for Auto Safety, said GM officials will “walk off scot-free while its customers are 6 feet under.”
“If a person kills someone because he decided to drive drunk, he will go to jail,” said Laura Christian, the mother of a woman who died in her 2005 Cobalt. Yet GM employees whose decisions led to scores of deaths “are able to hide behind a corporation because our laws are insufficient. It must change.”
Bharara said he understands victims’ families might be disappointed that no individuals were arrested. But he said there is no law with specific criminal penalties for failing to disclose auto safety problems.
Without such a statute, prosecutors had to rely on broader laws covering false statements and wire fraud, he said.
“We apply the laws as we find them, not the way we wish they might be,” he said. He added that GM was given credit for cooperating with the investigation, including sharing the results of its in-house probe.
The Justice Department has been long been criticized for often going after companies instead of individuals in cases of wrongdoing in the business world.
Eric Havian, a former federal prosecutor in San Francisco who now represents whistleblowers, said it can be extraordinarily difficult to prosecute employees.
The schemes are often so complex that a jury can easily get lost, and establishing that a particular person knew his actions were against the law is a challenge, he said.
In this case, court papers showed that GM engineers knew of the problem in 2004 and 2005 when other employees, the media and customers complained. But the engineers left it alone, rejecting a cheap and simple fix, court papers said.
Even after the dangers became plain in 2012, GM did not correct its earlier assurance that the switch posed no safety concern. Instead, Bharara wrote, it concealed the defect from regulators and the public “so that the company could buy time to package, present, explain and manage the issue.”
The wire fraud count pertained to the company’s assurances to customers over the Internet in 2012-13 that its used cars were safe.
The deal with GM comes a year and a half after Toyota agreed to a $1.2 billion penalty from the Justice Department for withholding information about deadly unintended acceleration in its vehicles.
Last year, GM recalled 2.6 million older small cars worldwide, including the Chevrolet Cobalt and Saturn Ion, to replace the faulty switches.
When they slip out of “run,” the engines shut off and the power-assisted steering, power brakes and the air bags are disabled. Some cars ran off the road or collided with other vehicles.
Last year, GM set up a fund to compensate victims. Lawyers administering it accepted 124 death claims and 275 injury claims. Families of those who died will get at least $1 million. GM has set aside $625 million to compensate people who settled with the fund.
Texas attorney Bob Hilliard represents 1,385 plaintiffs with death or injury claims that did not get compensation from the fund. On Thursday, GM said it has agreed to spend $575 million to settle those cases, as well as a shareholder lawsuit that said GM’s actions reduced the value of its stock.
Even with the settlements, GM cannot close the books on the scandal. It still faces more than 400 death and injury cases that have yet to be settled. Six cases are scheduled for trial, including one in January.
Amid the scandal more than a year ago, GM fired 15 employees for failing to act to resolve the switch problem.
The recalls led to other changes at GM. Barra appointed a new safety chief and added 35 product safety investigators. The company does more testing of parts, adopting the standards of the aerospace industry. And it started a program that encourages employees to speak up if they find a safety concern.
In addition, GM ordered a record 84 recalls in 2014 covering more than 30 million vehicles.
“We’re a fundamentally different and better company because of it, and we’re going to continue to build on that,” Barra said Thursday.
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Krisher reported from Detroit. AP writers Larry Neumeister in New York, Eric Tucker in Washington and Dee-Ann Durbin in Detroit contributed to this report.
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This story has been corrected to reflect that plaintiffs involved in lawsuit settlements did not get payments from GM’s compensation fund, rather than deciding against taking payments.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Black Press
Statement from the President of the National Association of Black Journalists on Press Ban
TEXAS METRO NEWS — The National Association of Black Journalists (NABJ) condemned President Donald Trump’s decision to deny access to MS NOW journalists and his threats against CNN and Politico due to unfavorable coverage. The NABJ stated that journalists hold power accountable for the American people, and government officials cannot grant or withhold access based on reporting they like or dislike.
NABJ condemns President Donald Trump’s decision to deny access to MS NOW journalists and his threat to exclude CNN and Politico because of coverage he dislikes. The role of journalists is to hold power accountable on behalf of the American people. Government officials cannot reward reporting they find favorable with access, or withhold access as punishment for journalists who have scrutinized or criticized them. This retaliation is a threat not only to the news organizations being targeted, but to every journalist working to report independently and without fear of government reprisal. The White House belongs to the American people, and they have a right to know what their government is doing. Journalists must be free to ask difficult questions and report the answers. A free and independent press is not a privilege granted at the discretion of any president. It is a cornerstone to a healthy and functioning democracy. The First Amendment can never be optional.
Based on reporting by Texas Metro News.
Black History
HBCU Leaders, Corporate Partners Convene in D.C. to Strengthen Support for Black Colleges’ Athletic Programs
COLUMBUS TIMES — HBCU athletic conference commissioners, university presidents, and corporate leaders gathered in Washington on Tuesday, September 15, for the Salute to HBCU Sports Leadership Reception. This invitation-only event, hosted at Gensler’s K Street office, aimed to deepen investment in historically Black colleges and universities.
Commissioners from HBCU athletic conferences joined university presidents and corporate leaders in Washington on Tuesday, Sept. 15, for the Salute to HBCU Sports Leadership Reception — an invitation-only gathering aimed at deepening investment in historically Black colleges and universities.
Hosted at Gensler’s K Street office, the evening brought together conference commissioners, campus presidents, and executives from sports, media and design organizations under the theme “Building Partnerships. Celebrating Excellence. Advancing HBCUs.” Gensler highlighted its partnership with Paxton Baker on the event in a post on Instagram, showcasing the room full of HBCU presidents and conference leaders.
Five Conferences, One Room
Commissioners from four NCAA conferences and one NAIA conference were on hand, representing institutions that compete across Division I, Division II and the NAIA:
Anthony Holloman — Southern Intercollegiate Athletic Conference Charles McClelland — Southwestern Athletic Conference Jacqie McWilliams Parker — Central Intercollegiate Athletic Association Sonja Stills — Mid-Eastern Athletic Conference Kiki Baker Barnes — HBCU Athletic Conference
Their presence linked leadership from across the HBCU athletics landscape with campus administrators and organizations working in event management, design and media.
Presidents and Black Press Leadership in the Room
Among the university presidents in attendance were Prairie View A&M’s Tomikia P. LeGrande and Bowie State’s Aminta H. Breaux.
LeGrande’s appearance came just days after the Thurgood Marshall College Fund named her the recipient of its Educational Leadership Award, as announced by Prairie View A&M. She was honored at TMCF’s 39th Anniversary Gala on Sept. 12 in Washington. LeGrande has served as Prairie View A&M’s ninth president since June 2023.
Breaux, who has led Bowie State since July 2017, previously chaired the CIAA’s board of directors, according to her university biography.
Benjamin F. Chavis Jr., president and CEO of the National Newspaper Publishers Association, also attended — fitting, given the NNPA’s role as one of the reception’s presenting partners. Chavis and HBCU GO’s Lawrencia Moten conducted two 30-minute interview sessions with the conference commissioners, covering topics ranging from the NIL era to conference growth and the experience of leading HBCU athletics, according to HBCU GO President Curtis Symonds, who spoke with HBCU Legends about the sessions.
Corporate and Institutional Partners
Five organizations presented the reception together:
Gensler — the architecture and design firm that hosted the event Events DC — the District’s convention and sports authority USA Track & Field — the sport’s national governing body National Newspaper Publishers Association — representing Black newspaper publishers HBCU GO — the network dedicated to HBCU sports and culture
That mix of partners pointed to a range of possible collaborations ahead, from athletic facilities and event operations to sports programming and media coverage.
Building Beyond the Scoreboard
What stood out most was the mix of people in the room — conference commissioners setting strategy for their leagues, university presidents shaping institutional priorities, and corporate partners bringing resources and expertise from multiple industries.
With college athletics undergoing rapid change, particularly for HBCUs navigating the NIL era and shifting conference dynamics, the reception offered a venue for candid conversation and relationship-building. Its underlying purpose went beyond athletics: using sports as an entry point to broader opportunities in education, workforce development and economic growth for HBCUs.
Based on reporting by Columbus Times.
Black History
At CBCF Conference, a Panel Asks What Black Public Figures Owe the People Who Follow Them
COLUMBUS TIMES — The Congressional Black Caucus Foundation’s Annual Legislative Conference featured a panel titled “Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach.” Actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét, and rapper Yung Joc discussed how public figures can translate influence into real-world change.
WASHINGTON — Among the more than 100 policy forums and brain trusts at this year’s Congressional Black Caucus Foundation Annual Legislative Conference was a conversation about influence itself: who has it, and what they do with it.
"Platforms & Purpose: A Conversation With Black Men Leveraging Their Reach" brought together actor and activist Kendrick Sampson, Rep. Jasmine Crockett, media personality Jason Lee, singer Eric Benét and rapper and radio host Yung Joc. The session looked at how entertainers, creators and elected officials can turn public attention into real-world change.
The panel took place at the 55th Annual Legislative Conference, a five-day event in Washington that began Wednesday. This year’s theme is "Rooted, Ready & Rising," and the conference coincides with the CBC Foundation’s 50th anniversary. CBCF President and CEO Nicole Austin-Hillery has said the gathering is meant to "combine celebration with purpose," while taking up issues including voting rights, economic opportunity, education, health disparities and criminal justice.
That mix of celebrity and policy is a long-running feature of the conference, which brings lawmakers, advocates, entrepreneurs, students and entertainers into the same rooms. The panel’s premise reflects a broader question as creators reach audiences that rival traditional media.
A career built on both stage and street
Sampson is a natural fit for that conversation. The Houston native is known for television and film work, including HBO’s Insecure, and for his activism off screen. He co-founded BLD PWR, a 501(c)(3) nonprofit that combines entertainment, education and activism.
The organization says its mission is to "reimagine and realize the liberated future we know our people deserve." It works to mobilize entertainment-industry figures and organize communities around racial, gender, immigration, economic and environmental justice, mental health and wellness, and opposition to state violence. BLD PWR emphasizes storytelling and community healing, and it centers the voices of Black, Indigenous and other marginalized communities.
What to watch
The conference runs through Sunday at the Walter E. Washington Convention Center. Details on sessions and registration are available through the CBC Foundation.
Based on reporting by Columbus Times.
Black Press
Newsom Signs Addictive Social Media Law to Protect Kids
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
Word Count: 391
Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.
AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.
The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.
“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.
AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.
Lowenthal said the new rules represent a shift toward greater accountability for technology companies.
“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.
The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.
Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.
Black Press
Newsom Signs Addictive Social Media Law to Protect Kids
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
Word Count: 391
Gov. Gavin Newsom has signed a new California law targeting addictive social media features that can keep children scrolling, giving the state new authority to restrict how platforms engage young users.
AB 1709, authored by Assemblymember Josh Lowenthal (D-Long Beach) prohibits social media companies from giving children under 16 access to personalized feeds, including “For You” pages, as well as other features designed to maximize screen time, such as infinite scrolling and video autoplay.
The law does not prevent children under 16 from using social media. Instead, platforms must deactivate the covered features for those users.
“This is about actually addressing the problem, the scrolling, the algorithms,” Newsom said Sept. 10 during a bill-signing event in the San Francisco Bay Area.
Newsom said California’s approach focuses on the features that can encourage excessive social media use rather than taking the broader step of banning teenagers from the platforms altogether. He contrasted the measure with restrictions adopted in Australia and Malaysia that prevent teenagers from accessing social media or creating accounts.
The law comes amid growing concerns about the impact of social media on children’s mental health and well-being. California lawmakers have increasingly focused on the design and business practices of technology platforms as part of efforts to protect young users.
AB 1709 is one of 13 youth online safety and privacy laws Newsom signed Sept.10. The package also includes measures regulating AI chatbots, increasing potential penalties for technology companies and establishing additional protections for children using digital services.
Lowenthal said the new rules represent a shift toward greater accountability for technology companies.
“We want oversight. We want accountability. We’re done asking nicely, and we’re demanding that there is a duty of care across these platforms — a duty that puts the wellness of our children ahead of profits,” Lowenthal said.
The law builds on California’s broader effort to regulate children’s online experiences. A separate law, AB 1043, will require users to provide their birth dates when setting up new phones or laptops beginning in January, with device manufacturers required to share users’ ages with apps.
Some youth online safety advocates have supported AB 1709 as a more targeted alternative to outright social media bans. Others have warned that the restrictions could make it harder for some LGBTQ+ young people to find support online and questioned how effectively age requirements can be enforced.
Black Press
OP-ED: How Head Start Also Helps Parents
BLACKPRESSUSA NEWSWIRE — “I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”
Ron Herndon Head Start Parent Scholarship awardee Paris Hill, of Sunbelt Human Advancement Resources in Greenville, South Carolina, says that Head Start has been instrumental in reaching her dreams.
“Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better—not only as parents but for yourself.”
Hill embodies the spirit of NHSA’s Ron Herndon Scholarship, which celebrates a Head Start parent who goes above and beyond in their community.
During the pandemic, Hill participated in virtual classroom instruction with her children and engaged in parent virtual activities such as Parent Committee meetings and financial literacy classes. She recently contributed over 96 hours to her program.
“I never thought I would be here before Head Start. It was rough. No childcare, job loss. I’ve been helpless,” she shared on stage at the National Head Start Conference in Baltimore. “When I applied, I did not think my daughter would get in. When I got the call, I cried tears of joy.”
Hill enrolled in college and pursued a bachelor’s degree in applied sciences with a concentration in business management. She has met and exceeded her personal goal of becoming a nail technician and creating her own business.
The $2,500 parent scholarship supported her vision. “Head Start made me sit and realize my goals and what steps I needed to take to achieve them. They show compassion, love, and dedication to helping parents. They push you to do, to be, and to do better — not only as parents but for yourself.”
She has an uncommon career goal — to become a mortician — and has already found part-time work. She has found it rewarding to assist families who were going through challenging times because of the death of a loved one.
“When I first applied for the parent scholarship program, I was excited and this was my time to show what I’m capable of. It fills my heart with joy knowing I had a team of teachers and directors pushing me to do better and acknowledging me as parents and not just as a mom.”
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