NEW YORK, April 18, 2014 /PRNewswire/ -- Pomerantz LLP
announces the filing of a class action lawsuit against General
Motors Company ("GM" or the "Company")(NYSE: GM) and certain of its
officers. The class action, 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.
If you are a shareholder who purchased GM securities during the
Class Period, you have until May 20,
2014, to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
GM is one of the nation's oldest and largest car manufacturers.
With a dealership network that spans the globe and over 200,000
employees, the Company plays a major role in the United States and international automobile
market.
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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP