GM INVESTOR ALERT: Edelson Lechtzin LLP Urges General Motors Company (NYSE: GM) Shareholders to Consult Counsel About the Pending Securities Fraud Class Action
NEWTOWN, PA, December 18, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of General Motors Company. (NYSE: GM) common stock between February 2, 2022, and October 26, 2023 (the “Class Period”).
Investors who purchased General Motors common stock may move the U.S. District Court for the Eastern District of Michigan to appoint them as lead plaintiff, no later than February 6, 2024. Current holders of GM stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on General Motors Company
General Motors is an American automotive manufacturing company headquartered in Detroit, Michigan. It has a global presence and produces a range of trucks, crossovers, cars, and auto parts under various brand names such as Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling.
Cruise LLC is a global segment owned mostly by GM. It is responsible for developing and commercializing autonomous vehicle (AV) technology. AVs are driverless vehicles. Cruise has obtained various permits to test and operate its AVs, claiming that they are safe for such purposes.
The Securities Fraud Claims
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or 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 GM 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, significant legal liabilities, product recalls, and reputational harm.
As per the NBC Bay Area report on October 2, 2023, a pedestrian sustained severe injuries when struck and trapped under a Cruise AV, which was operating without a driver. Cruise is cooperating with law enforcement authorities to investigate the incident. On this news, GM’s stock price fell $1.09 per share, or 3.36%, to close at $31.38 per share on October 3, 2023.
On October 5, 2023, the National Highway Traffic Safety Administration (“NHTSA”) conducted a public hearing to recommend a recall of more than 50 million airbag inflators that have been linked to potentially deadly explosions. Citing people familiar with the matter, The Wall Street Journal reported that at least 20 million of GM’s vehicles were equipped with defective airbag inflators, at least one of which had led to a confirmed fatality. On this news, GM’s stock price fell $0.73 per share, or 2.35%, to close at $30.31 per share on October 5, 2023.
On October 24, 2023, the California Department of Motor Vehicles issued a statement announcing the immediate suspension of Cruise’s deployment and driverless testing permits. On this news, GM’s stock price fell $0.66 per share, or 2.26%, to close at $28.56 per share on October 24, 2023.
On October 26, 2023, Cruise announced via a post on X (formerly Twitter) that it would pause all its AV operations across the country “while we take time to examine our processes, systems, and tools and reflect on how we can better operate in a way that will earn public trust.” On this news, GM’s stock price fell $1.33 per share, or 4.66%, to close at $27.22 per share on October 27, 2023.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Web: www.edelson-law.com
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.