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Federal Prosecutors Pursue Fraud Case Against GM

Destiny Baker2 years ago

Federal prosecutors are reportedly working on a set of mail and wire fraud charges in regards to General Motors' handling of an ignition switch flaw that has result dozens of crashes and multiple deaths.

Possibly Misleading Statements Made by GM

According to AutoNews, federal prosecutors are building a case which hinges on whether General Motors made misleading statement in regards to a defective ignition switch equipped in 2.6 million vehicles.

Investigators are reviewing information and communication activity dating back to before GM filed for bankruptcy in 2009. Sources claim that the prosecutors are working on mail and wire charges that are similar to those brought against Toyota earlier this year.

The prosecutors have will not target Delphi Automotive, the manufacturer of the defective switch, as they have determined that the company did not make significant safety statements concerning the faulty switches.

According to legal experts, GM’s bankruptcy filing does not protect them from criminal liability if fraud can be proven. There are also no caps on the penalties that GM could face if found guilty.

About the Defective Ignition Switch Recall

In February and March of 2014, GM recalled roughly 2.6 million vehicles equipped with a defective ignition switch.

According to recall notices, the faulty switch could shift out of the “run” position and into the “accessory” or “off” position, even when a vehicle was being driven. When this occurred, drivers were left without essential safety features including power steering, anti-lock brakes, and airbag functionality.

GM has confirmed that 13 deaths and 54 crashes have been linked to the defect – other organizations, however, put the death toll in the hundreds.

In efforts to compensate victims and the families of victims who were injured or killed in auto accidents involving the recalled vehicles, GM hired Kenneth Feinberg to establish a victims’ compensation fund. Victims who wish to file claims against GM are now able to file through this settlement fund, or they can pursue their case in court.

Thomas J. Henry Fights for GM Recall Victims

Thomas J. Henry is representing more than 1,000 GM recall victims across the United States and has been investigating injuries and deaths linked to the recall since day one. The firm launched a nationwide media investigation into the recall in April, which brought forth thousands of affected individuals who had information critical to the investigation – information that the firm has handed over to federal agencies also investigating GM’s sluggish response the recall.

As more and more individuals have flocked to Thomas J. Henry for representation, the firm has continued to push GM for a victim settlement fund. The firm has had several talks with GM’s victim compensation expert Ken Feinberg regarding appropriate victim compensation for the thousands affected by a fatal design flaw in ignition switches which left numerous dead and countless others seriously injured. 

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