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Feds Probe GM Over Ignition Problem Bankruptcy Fraud
Not only is GM facing record high inventories of slow-to-sell cars and the recall of million sof its cars (and a sale halt), Reuters reports that the terrible ignition switch problem - that has caused 13 deaths - may have been known about (and not disclosed) prior to the bankruptcy (and subsequent taxpayer bailout). The Justic Department is investigating whether GM understated (or hid) the information from regulators and committed bankruptcy fraud.
Federal authorities are investigating whether General Motors hid an ignition switch defect when it filed for bankruptcy in 2009, The New York Times reported on Saturday.
The Justice Department's investigation of the automaker includes a probe of whether GM committed bankruptcy fraud by not disclosing the ignition problem, a person briefed on the inquiry told the Times on Friday, the paper said.
Authorities are also investigating whether GM understated the defect to federal safety regulators, the Times said.
...
The investigation is being run by FBI agents and federal prosecutors who worked on the fraud case against Toyota that ended in a $1.2 billion settlement last week, the paper said.
On Wednesday, GM was hit with a lawsuit demanding that the company be held liable for allegedly concealing ignition problems before its 2009 bankruptcy.
GM is a different legal entity than the one that filed the 2009 bankruptcy that shook the U.S. economy. The so-called new GM is not responsible under the terms of its bankruptcy exit for legal claims relating to incidents that took place before July 2009. Those claims must be brought against what remains of the "old" or pre-bankruptcy GM.
But the proposed class action, filed in federal court in California, said plaintiffs should be allowed to sue over the pre-bankruptcy actions "because of the active concealment by Old GM and GM."
The lawsuit also said GM was responsible for reporting to the federal government any safety-related problems for cars made before its bankruptcy.
How long until we see May Barra plead da fif?
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Being big makes one hard to hide...when things go sideways.
if true, then:
the PEOPLE running general motors are murderers.
all for a buck.
anyone else tired of GREEDY SOCIOPATHS hiding behind a corporate shell to inflict harm?
is this the best we can do?
Wow so their no different from the prople running the country! Who da thunk it?
How the fuck is the DOJ (or the DOI, the Department of Injustice) gonna ever prosecute a company which it saved from bankruptcy and, if they charge these crony labor union shithead with a crime, how is this company gonna survive? MOAR BAILOUT. Who cares when you have the idiotic ability to print money backed by nothing.
Whats good for GM is good for AMERICA. Just ask Detroit.
HOLY FUCKIN' SHIT!!!!!!!
GOVERNMENT MOTORS MAY HAVE LIED !
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
Question: who holds the GM insurance policy? Number 2, when was this insurance policy due to expire? Number 3, who funded the Government Motors takeover to get quietly paid off using taxpayer moneys. Number 4, What Banking institute covered for this insurance loss?
excuse me, but insurance policies for gl have a clause that excludes fraud. any internal e-mails between executives about the problem and cover up would invalidate their general liability. so, there it is.
besides, companies the size of gm self-insure
We know you hate us. Be careful using your burnt phone. Go to the food court and have a medium rare fuck stick standwich. Tell them Michelle Obama sent you.
/lol
GM the broken car company.
Hows that channel stuffing workin out for ya now?
If the industy leader jumps off a cliff?
It'll all get sorted out in the next BK.
Bad time to pop the cork on big headline grabbing recalls while the channels are stuffed to the gunnells.
The first bad news is seldom the last bad news what other cheesey parts did GM stuff into their cars in a desperate bid to stay solvent? A lot of execs will get religion now that crim investigations have started and there will be an avalanch of recalls.
so....business as usual?
Some well placed campaign contributions and hiring out of the short timer Federal soon to be retired pool should clean this right up.
how are you going to probe your own company. Just farking stupid. STUPID. They will just come up with some stupid lame explanation, slap a fine and then go on their merry way. GM are producing some decent vehicles now, but this whole business of the Justice Dept probing GM is just BS. The Justice department is just a fascist front to appease the SHEEP.
It's called legal gov't extortion-a "shakedown racket" if you will.
Last week it was Toyota that coughed up a billion plus dollars.
BTW, don't we the taxpayers own Gov't Motors?
Wrong. Once the audit is completed the democrats will fund the legal bills, and the settlement of the law suits, and give them another 10 billion for their lost sales.
Which billions will be divvied up by the executives, and half of which will find its way back to the politicians who voted for another GM bailout.
I wouldn't buy a GM car, under any circumstances. Firstly because it is a failed business, subsidized by my taxes, and I don't want them to have another dollar of mine voluntarily, just on general principles. As much as I dislike Ford, at leat they managed to produce blah but dependable machines without my money. Secondly, those ignition switches should never have existed, and as soon as the first incident was reported, production should have been stopped.
But I do agree that Eric Holder won't do shit about penalizing them.
Anyone who buys a car from GM deserves an early death.
Who are you kidding? Next week a new GM car will be sent out to all EBT users.
Pensions gotz to be paid, cripsy critters or not
Any mechanical engineer worth three cents would immediately grasp the critical nature of this thing.
Then he would go do a few experiments, which would take a couple of weeks, proving that this could lead to a deadly chain of events (power steering locks, no airbags, no control of car...)
You would have to hang a bowling ball off the keyring on my Toyota SUV to get it to turn off by itself.
The GM execs are accessories to murder.
Holder will settle with no criminal charges, and his lawyers will get a billion dollars. The families will get nothing. The federal transportation safety board will continue to be worthless government hacks.
Simple as pie.
Engineers have been trumped by the politicians. The Engineering Code of Ethics has been shit on by big gubbermint.
The engineers in American car companies have no say in such things. The management suits make every decision that starts with a dollar sign. Even one dollar.
DOJ just slapped Toyota with a $1.2B fine for hiding a defect. This should be fun to watch.
No a chance in hell this probe goes anywhere. GM makes up half of obama's voting base. Waste of tax money and time..again
Pot calling the kettle back + chickens coming home to roost
They can do whatever they want, but this is among the many reasons why there is no way on this earth that I'll ever own a GM product.
so now we know why they put a women in charge of GM