GM Might Face Wire Fraud Charges And Costly Settlement
According to anonymous sources quoted in The Wall Street Journal, the DOJ is considering charging the Detroit automaker with wire fraud.By Matt Patston | June 9, 2015
General Motors could be on the hook for more than a billion dollars after failing to disclose ignition switch problems in the early 2000s.
The U.S. Department of Justice is reportedly considering charging the automaker with wire fraud, according to The Wall Street Journal. The charges stem from an ignition switch defect the company first noticed in 2001 and largely ignored for about a decade. (Video via WXYZ)
If the DOJ doesn't charge GM with a crime, prosecutors could give the automaker the option of a deferred prosecution agreement, where the company pays a fine and cooperates with the DOJ to stay out of court.