Because of the way it mishandled the 2.6 million autos defective ignition switch recall, GM is the subject of several probes from US regulators.
Yesterday, after it also reported its financial earnings for the first quarter, with profit sinking 88% also because of a huge charge for the recall, a regulatory filing also disclosed the company is facing five different government probes. Two of them, by the US Securities and Exchange Commission and a state prosecutor were previously unknown.
The five probes are from: the US Attorney’s Office for the Southern District of New York, the SEC, the National Highway Traffic Safety Administration (NHTSA), a state attorney general, and Congress. While GM didn’t say which state attorney general is involved, a spokeswoman for the Attorney General’s office in Florida said it’s a “multi-state group”.
“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,” the company said in the filing. “Although we cannot estimate a reasonable range of loss based on currently available information, the resolution of these matters could have a material adverse effect on our financial position, results of operations or cash flows.”
The company also disclosed it was aware of 55 class action lawsuits in US courts, as well as five more in Canada – for the time being.