General Motors Company (GM) Failed to Disclose Problems with its Airbags
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired General Motors Company (NYSE: GM) securities between February 2, 2022 and October 26, 2023. GM is an automotive manufacturing company that designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. Cruise LLC (“Cruise”) is GM’s majority-owned global segment responsible for the development and commercialization of autonomous vehicle (“AV”)—i.e., driverless—technology.
According to the complaint, during the class period, defendants failed to disclose that: (i) GM downplayed concerns with its vehicles’ airbags and the need to record additional warranty accruals for related product recalls; (ii) GM overstated the extent and efficacy of its efforts to analyze defects in its vehicles’ airbag inflators; (iii) Cruise’s AVs and/or AV technology were less safe and well-developed than defendants had led investors, regulators, and the general public to believe; (iv) accordingly, regulatory approval of Cruise’s AV products was unsustainable and the prospects for widespread regulatory approval and adoption of Cruise’s AV products were overstated; and (v) all the foregoing subjected GM to an increased risk of governmental and/or regulatory scrutiny and enforcement action, significant legal liabilities, product recalls, and reputational harm.
After a series of disclosures, including the National Highway Traffic Safety Administration’s recommendation to recall more than 50 million airbag inflators that have been linked to potentially deadly explosions; the California DMV’s suspension of Cruise’s deployment and driverless testing permits due to misrepresentations “related to [the] safety of the autonomous technology of its vehicles”; and GM’s pause of all its AV operations across the country, GM’s stock fell, harming investors.
What Now: Similarly situated shareholders may be eligible to participate in the class action against General Motors Company. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by February 6, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.