General Motors and the
Securities and Exchange Commission (SEC) announced that a settlement has been reached concerning an investigation related to
the company’s ignition switch scandal. The SEC charged GM with withholding information about the company’s internal ignition switch investigation from accountants. According to the SEC, this prevents accountants from determining the likelihood and possible financial loss of a recall, which must be disclosed in financial statements.
The final settlement includes a civil penalty of $1 million. It comes after GM’s consent and cooperation in the SEC’s investigation. General Motors neither admitted nor denied any wrongdoing with how it handled accounting during the ignition scandal.
Compared with GM’s other costs related to the ignition recall from two years ago, the $1 million penalty is fairly minor. The faulty ignition switches, which contributed to
the deaths of 124 people and injuries of 275, led the company to pay nearly
$600 million to victims. The company also had to fix
nearly 2.6 million cars with the ignition issue.
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