Jun 9, 2015, 11:09am ET

Report: DoJ considers wire-fraud charges against GM

Prosecutors have found evidence that the company sent misleading statements and hid information about the defect, sources claim.

General Motors could soon be hit with federal criminal charges related to its handling of the ignition-switch defect.

The Department of Justice is said to be considering wire-fraud charges, based on evidence of misleading statements that worked to hide the defect, unnamed sources have told The Wall Street Journal.

Federal prosecutors are allegedly exploring alternative charges, but no final decision has been reached.

The company's victim fund has paid claims related to 111 deaths and hundreds of injuries blamed on the defect, which caused vehicles to unexpectedly shut down and disabled the airbags.

The DoJ last year reached a $1.2 billion settlement agreement with Toyota over unintended-acceleration recalls, however some analysts expect GM to face an even higher penalty.

GM chief executive Mary Barra has acknowledged meetings with Justice Department officials. The latest report suggests the company is already involved in settlement talks, however specific details remain undisclosed.

"Our approach with the recall has been to be as open and transparent as possible—and that has certainly been the case with this investigation," a spokesperson said in a statement. "We need to let the process play out, and see no benefit to speculating about potential outcomes."

DoJ officials are said to be aiming for a finalized settlement agreement by the end of summer or early fall.