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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
General Motors Corp.
In re General Motors Securities Litigation
Date: 07/21/2008 (Date of Settlement)
Misconduct Type: Securities
Enforcement Agency: Non-Governmental
Contracting Party: None
Court Type: Civil
Synopsis: On September 19, 2005, GM was named as a defendant in a case brought “on behalf of purchasers of GM debt and/or equity securities during the period February 25, 2002 through March 16, 2005.” The case alleges violations of the Securities Act of 1933 (15 USC § 77, et. al.). “In particular, the complaint alleges that GM’s cash flows during the class period were overstated based on the ‘reclassification’ of certain cash items described in the Corporation’s 2004 Form 10-K…. The complaint also alleges misrepresentations relating to forward-looking statements of the Corporation’s 2005 earnings forecast that were later revised significantly downward… On January 17, 2006, the court made provisional designations of lead plaintiff and lead counsel, which designations were made final on February 6, 2006.” In July 2008, GM settled the lawsuit for $277 million.