General Motors (GM) [corporate website] on Wednesday agreed to pay $1 million [press release] to resolve a US Securities and Exchange Commission (SEC) [official website] inquiry. The SEC accounting case is in regards to a faulty ignition switch linked to 124 deaths and 275 injuries. This ignition switch defect resulted in vehicle recalls beginning in 2014. The settlement ends charges [Reuters report] that the accounting control failures at GM prevented the company from properly assessing any potential financial impacts of the defect. The SEC claims that the detective ignition switch was not brought to the attention of GM accountants until almost a year and a half after GM had identified the defect. According to the SEC, automakers must determine the probability of “whether the potential recall will occur, and provide an estimate of the associated loss or range of loss or otherwise provide a statement that such an estimate cannot be made.” GM has complied with the SEC order without admitting or denying any wrongdoing.

The faulty ignition switches have put GM in the spotlight over the past two years. In March a federal jury found [JURIST report] GM faulty ignition switches were not the casue of a 2014 accident. Prior to that case GM had already settled [JURIST report] for $900 million with the Department of Justice to stop a criminal probe by the US, $575 million to settle a shareholder suit and more than 1,380 civil cases by victims, and $595 million through a victims’ compensation fund outside of court. Other car manufacturers have also dealt with issues, such as Fiat Chrysler being handed a $105 million penalty, and Toyota agreeing to a $1.2 billion and $35.5 million settlements [JURIST reports] in 2014 and 2012, respectively.