Saturday, September 19, 2015

GM to pay huge fine, executives escape punishment in ignition lock disaster

The GM ignition switch disaster resulted in the loss of a number of lives.  GM will pay a huge fine but no executives are facing criminal charges  "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 . . . 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 Justice Department has been long been criticized for often going after companies instead of individuals in cases of wrongdoing in the business world."  Although the White House has announced it is looking into changing these policies regarding prosecution, that is not enough.   Prosecution under existing statutes is difficult.  What is needed, in addition, are criminal statutes which specifically focus on this type of wrongdoing.  It's time to stop coddling while-collar criminals whose culpable conduct results in the loss of human life.  It's time to stop coddling all white-collar criminals.

No comments:

Post a Comment