U.S. weighs wire-fraud charge against GM

The U.S. Justice Department is considering charging General Motors Co. with criminal wire fraud for the company’s failure to recall millions of vehicles with faulty ignition switches in 2014.

According to the Wall Street Journal, Manhattan U.S. Attorney Preet Bharara is building on a $1.1 billion settlement from March 2014 with Toyota Motor Corp.  for defrauding customers by making misleading statements about the safety of defective gas pedals.

Federal prosecutors in New York are focusing on similar charges related to GM making misleading statements and concealing information about the flawed ignition switches, which have now been linked to over 100 deaths.

GM paid a record $35 million fine last year for failing to alert regulatory bodies and customers of the defect – which could potentially slip out of the run position, thus disabling safety features – in 2.6 million older model Chevrolet Cobalts.

Read more from the Wall Street Journal.[[In-content Ad]]