SEC Fines GM $1 Million for Accounting Control Failures
January 18 2017 - 12:32PM
Dow Jones News
By Mike Spector
General Motors Co. agreed to pay a $1 million penalty to settle
charges from U.S. securities regulators that the Detroit auto giant
failed to alert its accountants to a defective ignition switch in a
timely manner, preventing them from evaluating the likelihood of a
recall or potential financial losses.
GM, without admitting or denying the charges, agreed Wednesday
to a Securities and Exchange Commission order finding the auto
maker violated federal law by "not devising and maintaining a
sufficient system of internal accounting controls," the agency
said.
GM recalled roughly 2.6 million vehicles in early 2014 with
defective ignition switches that risked slipping from the run
position and disabling safety features including air bags despite
having internal evidence of the problem for more than a decade. The
auto maker, which has admitted to the safety failure and undertaken
reforms, has previously reached settlements with the U.S. Justice
Department, shareholders and thousands of consumers totaling more
than $2 billion.
Write to Mike Spector at mike.spector@wsj.com
(END) Dow Jones Newswires
January 18, 2017 12:17 ET (17:17 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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