Auto News GM Acted Criminally in Ignition Switch Recall, Could Face Billion Dollar Fine: Report
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Federal investigators have identified criminal wrongdoing in General Motors’ ignition switch recall.
Justice Department investigators are negotiating what will likely become a record penalty to the American automaker after identifying criminal wrongdoing in General Motors’ failure to disclose a defect that resulted in at least 104 deaths. The settlement could be reached as early as this summer and will likely surpass Toyota’s $ 1.2 billion that was paid last year for the unintended acceleration issue.
What will separate GM from Toyota is that the American automaker has been eager to resolve the investigation, which will earn it cooperation credit. Toyota, on the other hand, fought prosecutors on the accusations rather than cooperating with the investigation.
SEE ALSO: GM Compensation Fund Nears Total of 300 Approved Claims
In addition, former GM employees are under investigation and could face criminal charges as a result of the ignition switch recall. According to the report from The New York Times, federal prosecutors in Manhattan and the FBI investigated whether GM failed to comply with laws that require timely disclosure of defects and misled regulators on the extent of the issue.
Authorities also investigated GM on whether it committed fraud during its 2009 bankruptcy by not disclosing the defect.
[Source: The New York Times]
Discuss this story at our General Motors forum
Filed under: American Car Recalls Featured Articles GM
Tags: general motors, GM, Ignition Switch recall
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