GM Admits Multiple Federal Criminal Probes Under Way
In an SEC filing today, GM, it appears, has been forced to admit that:
- *GM SAYS FACING RECALL INQUIRES FROM MULTIPLE GOV'T AGENCIES
As WSJ reports, government filing that it is under investigation by federal prosecutors, the Securities and Exchange Commission, a state attorney general, Congress and the National Highway Traffic Safety Administration for its handling of a recent rash of recalls. And furthermore,
- *60 PUTATIVE CLASS ACTIONS SUITS FILED OVER SWITCH RECALL
The company says in the filing it isn't currently able to estimate the potential costs of lawsuits or investigations tied to the ignition recall, but adds resolving the probes could have a "material adverse impact" on the company's finances.
GM formally confirmed the existence of a federal criminal probe of the recall by the U.S. Attorney for the Southern District of New York, in its quarterly report to the SEC filed today. GM had earlier reported an 82% drop in first quarter earnings, largely because of a $1.3 billion charge related to the ignition switch and other recalls.
GM said it believes it is "cooperating fully" with requests for information from the various investigating agencies, although it is paying fines to NHTSA for missing an April 3 deadline to respond fully to questions from the auto-safety regulator.
It isn't clear from GM's filing what aspects of the ignition-switch recall matter the SEC or the unidentified state attorney general are investigating.
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