General Motors is cooperating with a U.S. Justice Department investigation into GM’s handling of a defective ignition switch that has been linked to at least 104 deaths.

The defective ignition switch in question could easily be knocked into the “accessory” position, turning the car’s engine off and thereby disabling power steering, power brakes, and airbags. The switch was installed in several small GM cars including the Chevrolet Cobalt and the Saturn Ion.

According to anonymous sources familiar with the federal investigation, it is focused on whether GM violated mandatory disclosure requirements related to the ignition switch defect. General Motors may also have misled federal regulatory authorities about the problem and also committed fraud by not mentioning the problem in its 2009 bankruptcy filings.

Sources say that GM is not disputing the issue of criminal liability but instead is currently negotiating with the Justice Department over what criminal violations it will admit to and the size of the criminal penalty to be levied. Sources speculate that General Motors’ willingness to cooperate with the Justice Department may stem from Toyota’s lack of success in fighting prosecution over a defect that caused certain Toyota cars to spontaneously accelerate. It’s possible that by cooperating with prosecutors, GM may be assessed a smaller penalty than it would have received otherwise.

General Motors’ ultimate penalty may exceed the $1.2 billion assessed against Toyota in 2014. If it does, the penalty would be the largest penalty ever assessed against an automaker by the Justice Department.

GM has already paid a $35 million penalty to the National Highway Traffic Safety Administration for failing to notify that agency of the ignition switch problem soon enough. The company has also reserved $600 million to pay compensation to the victims of accidents related to the faulty ignition switch. Over 600 claimants have requested compensation for death and injury. Fund administrators hope to have all claims addressed by July 2015.

General Motors Ignition Recall

The GM ignition recall began in February 2014, affecting about 2.6 million small cars built with the defective ignition switch. The recall was spurred in part by the death of one woman in March 2010, when the ignition switch in her 2005 Cobalt failed and caused her to crash. The woman’s family initially agreed to a $5 million settlement with General Motors, then sued again, alleging GM had concealed the ignition switch defects and withheld evidence before reaching the initial settlement. The parties agreed to a second, undisclosed settlement in March 2015.

In addition to the federal prosecution, the company is also facing several consumer fraud investigations by multiple state attorneys general.

General Motors Class Action Lawsuits

Owners of recalled GM vehicles also continue to litigate about 140 General Motors class action lawsuits, seeking compensation for the diminished value of their vehicles resulting from the GM ignition switch recall. The plaintiffs’ compensation will be limited by an April 2015 decision by a U.S. bankruptcy judge upholding GM’s shield against liability for actions the company took prior to its 2009 bankruptcy and bailout. Nevertheless, plaintiff’s attorneys say at least 10 million car owners may still be eligible to sue for a total estimated damage amount of about $7.5 billion.