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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

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
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement
7/21/2008
Contractors Involved Penalty
Total
General Motors Corp. $277,000,000
Further Information Released
Notice of Proposed Settlement 4/6/2011
SEC 10-K (pp. 33-34 of 189) 8/24/2006

Federal Contractor Misconduct Database