GM to pay $1 million to settle SEC charges of accounting control failure
Bill Pugliano/Getty Images
When automakers face a potential recall, they must assess the potential for a recall and give an estimation of what the potential financial loss could be. In a statement Wednesday, the SEC said that the giant automaker did not follow this procedure and therefore the company accountants could not factor in the potential impact of a recall into their financial statements.
"The SEC's order finds that the company's internal investigation involving the defective ignition switch wasn't brought to the attention of its accountants until November 2013 even though other General Motors personnel understood in the spring of 2012 that there was a safety issue at hand. Therefore, during at least an 18-month period, accountants at General Motors did not properly evaluate the likelihood of a recall occurring or the potential losses resulting from a recall of cars with the defective ignition switch," the SEC said in a statement.
General Motors did not admit or deny the charges, but consented to the SEC's findings that the company did not have a sufficient system in place.
- Love in the time of elections: Do politics spice up or spoil dating in India?
- Samsung Galaxy S24 Plus review – the best smartphone in the S24 lineup
- Household savings dip over Rs 9 lakh cr in 3 years to Rs 14.16 lakh cr in 2022-23
- Misleading ads: SC says public figures must act with responsibility while endorsing products
- Here’s what falling inside a black hole would look like, according to a NASA supercomputer simulation
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market