Securities regulators are probing recall, says GM
U.S. securities regulators are looking into General Motors' delayed recall of more than 2 million cars with a deadly ignition switch problem.
GM disclosed in a quarterly report that the Securities and Exchange Commission has made inquiries about the recall. It also confirmed that the U.S. Attorney's office in New York and an unidentified state attorney general are conducting investigations.
The SEC likely is probing whether GM failed to disclose the switch problem to investors. GM is recalling 2.6 million older small cars because the switches can unexpectedly slip out of the "run" position. That can shut down the engine, knock out the power-assisted steering and brakes and disable the air bags. Drivers can lose control of their cars and crash.
GM says 13 deaths are linked to the problem.