If you suffered losses exceeding $100,000 investing in General Motors stock or options between February 2, 2022 and October 26, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/GM.
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NEW YORK, Dec. 21, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against General Motors Company (“General Motors” or the “Company”) (NYSE: GM) and reminds investors of the February 6, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) GM downplayed concerns with its vehicles’ airbags and the need to record additional warranty accruals for related product recalls; (2) GM overstated the extent and efficacy of its efforts to analyze defects in its vehicles’ airbag inflators; (3) 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; (4) 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; (5) 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; and (6) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
Cruise LLC (“Cruise”) is GM’s majority-owned global segment responsible for the development and commercialization of autonomous vehicle (“AV”)-i.e., driverless-technology. Cruise has secured various testing and driving permits for its AVs on the ostensible premise that those AVs were sufficiently safe for such purposes.
Since at least as early as November 2020, GM’s products have been the subject of multiple recalls because of defective airbag components in the Company’s vehicles, exposing the Company to various global lawsuits. Nevertheless, GM has consistently downplayed safety concerns related to its vehicles’ airbags and the need to record additional warranty accruals for related product recalls, while touting the Company’s efforts to identify and address perceived defects with its vehicles’ airbag inflators.
On October 2, 2023, NBC Bay Area reported that a pedestrian suffered major injuries after she was run over by and pinned beneath a driverless Cruise AV. NBC Bay Area further reported that Cruise was cooperating with law enforcement regarding 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 held 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 (“WSJ”) subsequently reported that at least 20 million of GM’s vehicles were built with the defective airbag inflators in question, 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 (“California DMV”) issued a statement announcing the immediate suspension of Cruise’s deployment and driverless testing permits. In suspending Cruise’s permits, the California DMV cited, among other issues, that Cruise “ha[d] misrepresented . . . information related to [the] safety of the autonomous technology of its vehicles.”
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.
Then, on October 26, 2023, Cruise announced via a post on X (formerly Twitter) that it would pause all of 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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding General Motor’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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