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General Motors Corporation Summary: According to a press release dated August 8, 2008, Grant & Eisenhofer and Labaton Sucharow, co-lead counsel for the plaintiffs in a federal securities case involving General Motors Corp., have announced that a settlement has been reached whereby GM will make a cash payment of $277 million. Defendant Deloitte & Touche LLP, which served as GM's outside auditor during the period covered by the action, agreed to contribute an additional $26 million in cash -- bringing the total amount of the settlement to $303 million. The action is pending before U.S. District Judge Gerald Rosen in U.S. District Court for the Eastern District of Michigan.
On October 16, 2007, Honorable Gerald E. Rosen signed the Order appointing Honorable Layn R. Phillips as Master for Settlement Negotiations.
On August 15, 2006, the plaintiffs filed a Third Amended Complaint, and the defendants have responded by filing motions to dismiss the Third Amended Complaint.
As summarized by the civil docket 05-CV-8088, on November 14, 2005, the Court entered the Pretrial Order No. 1 signed by U.S. District Judge Richard M. Berman consolidating the actions. On November 18, 2005, the plaintiffs filed an Amended Complaint. On February 6, 2006, the Court entered the Order granting the motion to appoint Deka Investment GmbH and Deka International, S.A. Luxembourg as Lead Plaintiffs. On March 15, 2006, the plaintiffs filed a Second Amended Complaint. On May 30, 2006, the Court entered the certified try copy of the conditional Multidistrict Litigation transfer out order transferring the action from the U.S. District Court for the Southern District of New York to the Easter District of Michigan, case number 06-MD-01749.
The original complaint alleges, inter alia, that defendants General Motors, General Motors Acceptance Corporation, and certain of GM’s officers and directors, issued or caused to be issued materially false and misleading statements to the investing public with respect to the Company's financial performance and condition during the relevant time. In addition, during the fourth quarter of 2004 and the first quarter of 2005, defendants, with knowledge or reckless disregard of facts then in their possession, disseminated materially false and misleading projections, lacking in reasonable basis, with respect to GM's first-quarter and year 2005 revenues, earnings and cash flow.
During the Class Period, when the Company's debt ratings were materially inflated by defendants' materially false and misleading statements and omissions, defendants caused GM to issue more than $18 billion in debt securities. When the true facts finally began to come out at the end of the Class Period, the price of GM stock, which had closed at $32.71 on March 15, 2005, declined by $4.57 per share, or 14%, to close at $28.14 per share on March 16, 2005. The prices of the Company's debt securities also declined in the market.
Several similar, purported class action complaints have also been filed in the United States District Court for the Eastern District of Michigan.
INDUSTRY CLASSIFICATION:
SIC Code: 3711
Sector: Consumer Cyclical
Industry: Auto & Truck Manufacturers
| COMPANY/ISSUER NAME: | General Motors Corporation |
| COMPANY/ISSUER TICKER: | GM |
| COMPANY WEBSITE: | http://www.gm.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Folksam Asset Management, et al. v. General Motors Corporation, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint for Violations of the Federal Securities Laws - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 09/19/2005 | ||
| Amended Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 11/18/2005 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 07/07/2006 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In Re: General Motors Corporation Securities Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Third Amended Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 8/15/2006 | ||
| Order Appointing The Honorable Layn R. Phillips As Master For Settlement Negotiations | |||
| Type: Order | Date on the document: 10/16/2007 | ||
| US District Court Civil Docket | |||
| Type: Docket | Date on the document: 6/10/2008 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Francesco Galliani, et al. v. General Motors Corporation, et al. | |||
| Type: Complaint | Date on the document: 10/06/2005 | ||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Charles Rosen, et al. v. General Motors Corporation, et al. | |||
| Type: Complaint | Date on the document: 12/22/2005 | ||
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