U.S. Probes Whether GM Lawyers Hid Safety Defect

Federal prosecutors are trying to determine if General Motors Co.'s legal department knew about potential ignition switch problems but concealed the evidence from government safety regulators, The Wall Street Journal reports.

The probe is in an early stage and may not result in charges. Legal experts tell the Journal such prosecutions are rare and difficult to prove. But an unnamed source tells Reuters that investors have determined GM lawyers were present during key meeting in which information about product problems were discussed.

GM recalled 2.6 million vehicles in February to replace ignition switches that can be jostled out of the "run" position. The company admits knowing about the problem for more than a decade and has dismissed 15 employees, including at least three attorneys, for failing to alert upper management to the defect sooner.

An internal review release in June by outside attorney Anton Valukas found no evidence of a conspiracy to hide vehicle safety problems.

But the report also describes a generally secretive GM legal department that was repeatedly warned beginning in 2010 that the company might face big court judgments stemming from a slow response to the ignition switch defect.

The Journal notes that the investigation into GM's legal department is part of a broader criminal probe being led by the FBI and the U.S. attorney's office in New York City.