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General Motors Deferred Prosecution Agreement

General Motors (GM) was subjected to a Deferred Prosecution Agreement (DPA) in September 2015, requiring the company to pay a $900 million fine. This penalty was the result of the company`s failure to disclose a defect in its ignition switches, which resulted in the deaths of 124 people and multiple injuries.

The ignition switch issue was first discovered in 2004, but it wasn`t until 2014 that the company started recalling affected vehicles. Just a year later, in 2015, the company was charged with concealing information and defrauding consumers. The DPA required GM to comply with strict terms and conditions for three years or face further penalties.

One of the most significant requirements of the DPA was for GM to establish an independent monitor to ensure compliance. This monitor had full access to the company`s records and operations, and was tasked with reporting to the Department of Justice on GM`s progress in meeting the DPA`s requirements.

Additionally, GM was ordered to make significant changes to its corporate culture to ensure that safety issues were identified and addressed quickly. The company was required to create a system of checks and balances, including formal decision-making processes, to ensure that safety issues were not ignored.

The DPA also required GM to cooperate fully with the Department of Justice`s investigation and to provide regular updates on its progress. This included providing detailed reports on its compliance with the DPA`s requirements, as well as any other issues that arose during the monitoring process.

Overall, the GM Deferred Prosecution Agreement was a significant development in the Department of Justice`s efforts to hold corporations accountable for their actions. Through the DPA, GM was held accountable for its failure to disclose a safety issue, and was required to make significant changes to prevent similar incidents in the future.

While the DPA was a significant achievement, it is important to note that it was not a perfect solution. Critics argued that the $900 million fine was not sufficient to deter future violations, and that the requirement to establish an independent monitor was not enough to ensure compliance.

In conclusion, the General Motors Deferred Prosecution Agreement was a landmark case in corporate accountability, highlighting the need for companies to prioritize safety issues and be transparent about any problems that arise. While the agreement was not a perfect solution, it sent a strong message that companies that fail to disclose safety issues will be held accountable for their actions.

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