General Motors Company (NYSE: GM) Investor Securities Class Action Lawsuit 03/21/2014

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Company Name(s): 
General Motors
Case Name: 
General Motors Shareholder Class Action Lawsuit 03/21/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: GM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/21/2014
Class Period Begin: 
11/17/2010
Class Period End: 
07/24/2014
Court of Filing: 
U.S. District Court for the Eastern District of Michigan
Deadline To File for Lead: 
05/20/2014
Date Settled: 
11/20/2015
Settlement Amount: 
$300,000,000
Deadline to Participate in Settlement: 
04/27/2016
Summary: 

May 19, 2016 - The court approved the settlement, the plan of allocation, the motion for attorneys’ fees and expenses.

November 20, 2015 - The court preliminarily approved the settlement.

November 13, 2015 - Parties filed a stipulation of settlement.

March 13, 2015 - Defendants filed a motion to dismiss.

January 16, 2015 - The lead plaintiff filed a second amended complaint.

January 15, 2015 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased GM common shares between November 17, 2010 and July 24, 2014. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between November 17, 2010 and July 24, 2014.

May 20, 2014 - Lead plaintiff motions were filed.

March 21, 2014 - An investor in shares of General Motors Company (NYSE: GM) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against General Motors Company over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between November 17, 2010 and March 10, 2014.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of General Motors Company (NYSE: GM) between November 17, 2010 and March 10, 2014, that General Motors Company and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff claims that the defendants allegedly made false and/or misleading statements and/or failed to disclose that General Motors Company was in breach of applicable industry and government regulations and policies concerning passenger and automotive safety, that General Motors Company was subject to criminal and civil litigation and potentially devastating harm to its reputation and future revenues, that over three million General Motors Company cars contained defects subjecting drivers, passengers and others to devastating, and at times fatal, injuries, that General Motors Company lacked adequate internal controls, that despite defendants' allegedly knowing of such potential harm to drivers and passengers, as early as 2001, General Motors 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 that as a result of the foregoing General Motors Company's statements were allegedly materially false and misleading at all relevant times.

On February 7, 2014, General Motors Company notified the National Highway Traffic Safety Administration ("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 February 24, 2014, General Motors 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, General Motors Company sent a letter to the NHTSA detailing the alleged issues with General Motors Company's ignition switches and submitted a chronology of General Motors Company’s discovery of such problems and failure to properly advise consumers and regulators, leading to various injuries and deaths.

Shares of General Motors Company (NYSE: GM) declined from $41.53 per share in December 2013 to $34.09 per share on March 14, 2014.

General Motors Company reported that its annual Total Revenue rose from over $150.25 billion in 2011 to over $155.42 billion in 2013 while its respective Net Income declined from over $9.19 billion to over $5.34 billion.

On March 21, 2014, General Motors Company (NYSE:GM) shares closed at $35.01 per share.