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General Motors, federal prosecutors reach ignition probe agreement, report says

Federal prosecutors have reached an agreement with General Motors to resolve a criminal investigation into how the Detroit automaker broke the law by concealing a deadly problem with small-car ignition switches, three people briefed on the case said Wednesday.

According to those people, who asked not to be identified, the terms require GM to pay a fine of around $900 million in a deferred prosecution agreement on a wire fraud charge. That means any charges would be dismissed if GM complies with oversight and other terms for three years, said one of the people.

Last year, GM recalled 2.6 million older small cars worldwide to replace the faulty switches.

The problem caused crashes that killed at least 124 people and injured 275 more, according to lawyers in charge of a fund set up by GM to compensate victims.

Families of those who died will get at least $1 million.

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