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GM Quarterly Report Confirms Federal Investigations

Tina Robinson3 years ago

General Motors has confirmed recently that the automaker is facing multiple investigations and inquiries stemming from the ignition switch recall, including an SEC probe and a Justice Department investigation. The confirmation was part of a disclosure in the company’s first quarter report, according to NBC News.

Details of the GM Recall Investigations

A disclosure in GM’s first quarter report says, “We are also the subject of various inquiries, investigations, subpoenas and requests for information from the U.S. Attorney’s Office for the Southern District of New York, Congress, NHTSA, the SEC and a state attorney general in connection with our recent recalls.”

The SEC inquiry mentioned in the report is most likely to look at whether or not GM disclosed the problems with the defective ignition switches to investors.

The report also noted that the investigations could result in “the imposition of damages, fines or civil and criminal penalties.”

GM Ignition Switch Recall

Since February, GM has recalled over 2.6 million vehicles with faulty ignition switches. These switches can be bumped or jostled out of position, resulting in a sudden loss of power steering, power brakes and airbags. The faulty switches have been associated with at least 13 deaths.

Most of the recalled vehicles are older Chevrolet Cobalts and Saturn Ions that were frequently purchased by younger, less experienced drivers. Victims and their families have lodged numerous lawsuits against the auto maker.

GM CEO Mary Barra announced in April during testimony before a Congressional panel the company had hired attorney Kenneth Feinberg to explore options for a GM compensation fund for victims and their families. Feinberg recently confirmed his hiring but noted exact details of the program, including how many money and who would be eligible, are still in progress.

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