The Shareholders Foundation announces that an investor, who currently holds shares of General Motors Company (NYSE:GM), filed a lawsuit against directors of General Motors Company in connection with the massive recall over faulty ignitions switches.
Investors who are current long term stockholders in General Motors Company (NYSE:GM) shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff claims that the board members of General Motors Company should be held liable for failing to notify the public about the faulty ignition switches on several cars of General Motors Company when the company first discovered the defect which resulted in a recall of millions of cars this year.
The plaintiff claims that from at least 2009, when a majority of the current board of directors held their positions, until February 2014, General Motors Company failed to announce a major recall of the Cobalt and other defective vehicles with the faulty ignitions switch and failed timely to make required filings with the National Highway Traffic Safety Administration, which could expose the company to criminal liability.
Plaintiffs claim that General Motors Company did not publicly address the faulty ignition problem until a private investigator, hired in a personal injury lawsuit arising out of a Chevrolet Cobalt drivers’ death, discovered that the ignition switch was replaced in later versions of the Cobalt with a functional switch, showing General Motors Company allegedly knew of the problem, but never informed the public.
General Motors Company currently faces a lawsuit over alleged securities laws violations. The plaintiff alleges that General Motors Company 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.
In late March General Motors Company expanded the recall for “ignition switch torque performance,” affecting 823,788 vehicles.
In April General Motors Company recalled about 2.19 million vehicles for the broader “ignition cylinder” issue, affecting thee 2005-2010 Chevy Cobalt, the 2006-2010 Chevrolet HHR, the 2003-2010 Pontiac G5, the 2006-2010 Pontiac Solstice, the 2003-2007 Saturn Ion, and the 2007-2010 Saturn Sky.
In early June 2014 General Motors Company announced four more recalls affecting 89,000 more vehicles.
More than 80 ignition-switch-related civil lawsuits have been filed against GM, most alleging economic damages, such as repair costs and declines in resale value on about 2.6 million cars recalled since February.
Shares of General Motors Company (NYSE:GM) declined from $41.53 per share in December 2013 to as low as $33.03 per share on May 20, 2014.
On June 16, 2014, General Motors Company announces a recall of another 3.16 million vehicles.
NYSE:GM shares closed on June 16, 2014 at $36.06 per share.
Those who purchased shares of General Motors Company (NYSE:GM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego