General Motors announced today that the federal government is subjecting the automaker to five different probes, including two previously unreported investigations by the U.S. Securities and Exchange Commission (SEC) and an unspecified state prosecutor. This is in response to its handling of the ignition switch recall.
Reuters is reporting that General Motors revealed the probes in a regulatory filing while announcing that first-quarter profit has fallen 88 percent due to the current recall trauma. GM also acknowledged 55 class action lawsuits pending in U.S. courts, plus five more in Canada.
In the regulatory filing, General Motors claimed it was cooperating with all investigations, stating, “We are currently unable to estimate a range of reasonably possible loss for the lawsuits and investigations because these matters involve significant uncertainties at these early stages.” It is aware it could face “damages, fines, or civil and criminal penalties.”
At the moment, General Motors has not specified which attorney general is involved or at what the SEC is looking. Read GM Authority to bring you the information when it is released.
Comments
It is time for Tort reform in this country.
The class action law suit has robbed all Americans wallets as we end up paying for them. The so called people they lawyers represent get a free oil change if they are lucky and the lawyers walk away with millions in payment for taking it to court.
With the lawyers all donating the full limits of money to campaigns no one in Washington will ever change the law.
Thank you scott, it’s nice to see someone else tell it like it is.