GM Pays $1M to Settle Ignition Switch Recall Charges From the SEC

General Motors has settled another charge against it as a result of the massive ignition switch recall.

GM will pay the U.S. Securities and Exchange Commission (SEC) $1 million to settle a charge of accounting control failure related to the ignition switch scandal. The SEC alleges that GM knew about the potential for a recall involving ignition switches in Spring of 2012, but didn’t follow procedure by not alerting its accountants to the potential loss of the recall until November of 2013.

“Internal accounting controls at General Motors failed to consider relevant accounting guidance when it came to considering disclosure of potential vehicle recalls,” said Andrew Calamari, the SEC’s New York office director.

SEE ALSO: GM Will Face More Ignition Switch Lawsuits

The result of this, according to the SEC, is “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.” This does not conform with Generally Accepted Accounting Principles (GAAP), which are are governed by the SEC.

In the company’s statement, GM says that the investigation has been resolved by the company “consenting to an administrative SEC Cease and Desist Order, without admitting or denying any wrongdoing.” GM also says it has changed its internal system so that defect can be found and reported sooner. A new “Speak Up For Safety” campaign has also been launched, allowing employees at all levels report potential safety defects.

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