In re General Motors Securities Litigation
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.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement
|General Motors Corp.||$277,000,000|