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GM Cruise to pay $500,000 fine to Justice Department, admits filing false report

GM Cruise to pay 0,000 fine to Justice Department, admits filing false report

General Motors’ autonomous vehicle unit Cruise accepted Filing a false report in an attempt to influence a federal investigation into a security incident that occurred last year. As redemption, the company will pay a $500,000 penalty under a deferred prosecution agreement, according to the Department of Justice (DOJ).

This is one of several state and federal fines Cruise has incurred for omitting key information on the matter. october incidentMeanwhile, the Cruise robotaxi ran over a pedestrian who was thrown into its path after being hit by a human-powered car. The autonomous vehicle then began dragging the pedestrians for about 20 meters to pull them over; This is information Cruise did not immediately share with regulators.

In June, Cruise agreed to pay $112,500 to the California Public Utilities Commission to avoid litigation and “end” the dispute. Three months later, the National Highway Traffic Safety Administration (NHTSA) slapped Cruise hard. $1.5 million fine.

The Securities and Exchange Commission also to research event.

As part of his agreement with the Justice Department, Cruise must work with government investigations, implement a security compliance program and submit annual reports on enforcement and improvement to the U.S. Attorney’s Office.

If Cruise cannot fulfill its obligations during the three-year agreement period, the government may initiate prosecution for the alleged crime.

“Today’s deferred prosecution agreement holds Cruise and his employees accountable for their lack of integrity in the federal compliance case,” Cory LeGars, special agent in charge of the U.S. Department of Transportation’s oversight agency, said in a statement.

Since the incident, Cruise has taken many hits, financially and otherwise. To wander lost their permits run commercially in California and grounded his fleet nationwide. Parent company General Motors Cruise cuts spending and took a tighter role in controlling the company; 24% of the workforce was laid off and the departures of senior leaders, including the co-founder, and CEO Kyle Vogt.

While Cruise has resolved its investigation into this incident with NHTSA, the agency is still investigating whether Cruise’s robotaxi handled pedestrians safely enough. In August, Cruise was recalled Approximately 1,200 robotaxis to solve unexpected braking problem.

Still, Cruise is trying to make a comeback. Company restarts supervised autonomous driving Bay Area, dallas And Phoenixand a Agreement with Uber Bringing cruise robotaxi to ride-hail application in 2025.