| Company: | General Motors Company |
| Ticker Symbol: | GM |
| Class Period: | Nov-17-10 to Mar-21-14 |
| Date Filed: | Apr-4-14 |
| Lead Plaintiff Deadline: | Jun-3-14 |
| Court: | Eastern District of Michigan |
| Allegations: | |
The lawsuit, filed in United States District Court, Eastern District of Michigan, and docketed under 14-cv-11191 is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of GM between November 17, 2010 and March 21, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) GM was in breach of applicable industry and government regulations and policies concerning passenger and automotive safety; (2) the Company was subject to criminal and civil litigation and potentially devastating harm to its reputation and future revenues; (3) over three million GM cars contained defects subjecting drivers, passengers and others to devastating, and at times fatal, injuries; (4) the Company lacked adequate internal controls; (5) despite defendants' knowing of such potential harm to drivers and passengers, as early as 2001, the Company refused to recall such vehicles for a quick and inexpensive fix to the cars' ignition switches, leading to at least twelve reported deaths and countless injuries; and, (6) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On February 7, 2014, the Company notified the NHTSA of its decision to recall 2005-2007 Chevrolet Cobalt and 2007 Pontiac G5 vehicles, due to defects in the manufacturing of their key ignition switches.
On this news, the Company's shares fell $1.21 per share, or over 3%, to close at $34.90 per share on February 10, 2014.
Then, on February 24, 2014, the Company expanded the recall to include the 2003-2007 Saturn Ion, 2006-2007 Chevrolet HHR and Pontiac Solstice, and 2007 Saturn Sky. These initial recall announcements included more than 1.65 million vehicles.
On March 11, 2014, the Company sent a letter to the National Highway Traffic Safety Administration ("NHTSA") detailing the alleged issues with GM's ignition switches and submitted a chronology of the Company's discovery of such problems and failure to properly advise consumers and regulators, leading to various injuries and deaths.
On this news, the Company's shares fell $1.91, to close on March 11, 2014, at $35.18 per share, a one day decline of over 5%, on volume of over 41 million shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
