News/Events

Arkansas to receive over $1.4 million

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has reached a $120 million settlement, along with 48 other states and the District of Columbia, with General Motors Company (GM) over allegations that the company concealed safety issues related to ignition switch defects in GM vehicles. Arkansas will receive over $1.4 million.

The settlement concludes an investigation into the auto manufacturer’s failure to timely disclose known safety defects associated with unintended key-rotation-related and/or ignition-switch-related issues in several model years of GM vehicles.

“GM’s failure to notify consumers of these ignition-switch issues is not only deceptive but dangerous,” said Attorney General Rutledge. “This inexcusable action placed the safety of Arkansans driving these flawed vehicles at risk as well as other drivers on the road. GM is being held accountable for these violations of many consumer protection laws.”

In 2014, GM issued seven vehicle recalls in response to unintended key-rotation-related and/or ignition-switch-related issues, which have affected over 9 million vehicles in the U.S. The recalls involved a defective ignition switch which, under certain conditions, could move out of the “run” position to the “accessory” or “off” position. Resulting in a loss of electrical systems, including power steering and power brakes. If a collision occurs while the ignition switch is in the “accessory” or “off” position, the vehicle’s safety airbags may also fail to deploy, increasing the risk of serious injury or death in certain types of crashes in which the airbag was otherwise designed to deploy.

As Rutledge and her colleagues alleged, certain employees of GM, knew as early as 2004 that the ignition switch posed a serious safety issue because it could cause airbag non-deployment. Despite this knowledge, GM personnel decided it was not a safety concern and delayed issuing recalls. GM continued to market the reliability and safety of its vehicles which were equipped with this defective ignition switch.

The states alleged that these actions were unfair and deceptive and that the automaker’s actions violated state consumer protection laws, including the Arkansas Deceptive Trade Practices Act.

Under the consent judgment, GM shall:

• Not represent that a motor vehicle is “safe” unless they have complied with the Federal Motor Vehicle Safety standards applicable to the motor vehicle at issue.
• Not represent that certified pre-owned vehicles that GM advertises are safe, have been repaired for safety issues, or have been subject to rigorous inspection, unless such vehicles are not subject to any open recalls relating to safety or have been repaired pursuant to such a recall.
• Instruct its dealers that all applicable recall repairs must be completed before any GM motor vehicle sold in the U.S. and included in a recall is eligible for certification and, if there is a recall on any certified pre-owned vehicle sold in the U.S., the required repair must be completed before the vehicle is delivered to a customer.

In addition to Arkansas, the multistate group – led by Ohio, South Carolina, Connecticut, Florida, Maryland, Michigan, New Jersey, Pennsylvania and Texas – includes Alabama, Alaska, California, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

Thanks Carl Vogelpohl for his service to the office and state

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today named Cory Cox of Perryville as Chief of Staff at the Attorney General’s office following the departure of Carl Vogelpohl, who has served in that role since the beginning of Rutledge’s term.

“There is no one better prepared to serve as my Chief of Staff than Cory Cox,” said Attorney General Rutledge. “Not only does Cory have many years of experience across state government, but as my Legislative Director for nearly three years, he has developed strong relationships with members of the General Assembly and understands the need for this office to be the top law firm in the state. He has a tremendous work ethic, a desire to serve the public and I am confident he will do an exceptional job leading the team at the office to ensure that we continue to protect Arkansans from criminals, con artists and an overreaching federal government.”

Cox, who has been serving as Legislative Director at Attorney General’s office since 2015, began his career as Assistant Legal Counsel to Huckabee before being promoted to Deputy Chief Counsel. Under Huckabee, he formulated policy and legislation, served on the Criminal Code Revision Commission, the Arkansas Crime Information Center Steering Committee and as legislative counsel to the Governor during the 2003 Regular Session. In 2005, Cox was appointed as Director of the Criminal Investigation Division of the Arkansas Insurance Department. He served as Chairman of the Education and Training Committee of the National Association of Insurance Commissioners Anti-Fraud Task Force and as a subject matter expert in insurance fraud for the National White Collar Crime Center. Cox was a Partner in the law firm of Hiland, Thomas and Cox from 2009 until 2011, when he began serving under Commissioner of State Lands John Thurston as Staff Attorney and Legislative Affairs Liaison. In 2014, he was named Managing Attorney for the Arkansas Department of Human Services Division of Policy and Legal Services. A graduate of Arkansas Tech University, Cox obtained his juris doctor from the University Of Arkansas William H. Bowen School Of Law. Cox is also a member of the Perryville School Board.

On the departure of Vogelpohl, Rutledge said, “Carl has been a trusted and influential advisor. He has been a key member of my leadership team from the transition period before taking office through these first few years in my administration. Since his instrumental work on my 2014 campaign, I knew that at some point Carl would want to return to political consulting and with the 2018 election season approaching, that time has come. I am grateful to Carl for his advice and counsel, and more importantly his service to the people of Arkansas. I wish him nothing but the best as he pursues a new challenge.”