A law firm recently announced that it filed a securities class action claim against a vehicle manufacturer due to shareholders receiving information that was allegedly false or misleading.
Law office Pomerantz, LLP, noted it filed the litigation against General Motors Company in the U.S. District Court for the Eastern District of Michigan. This action includes all shareholders who purchased interests in the company during the class period between Nov. 17, 2010, and March 21, 2014. The allegations are numerous, but focus on the board of directors and other leaders allegedly violating the Securities Exchange Act of 1934, specifically Sections 10(b), 20(a) and Rule 10b-5.
The allegations specifically note that GM may have not been in line with government and industry safety regulations, while millions of cars were defective. These issues had the company at risk of litigation from consumers, as well as the possibility of hurting shareholders. Additionally, there may have been a lack of controls among the internal aspects of the company. Multiple recalls and reports that were released hurt the stock price throughout the early part of 2014.
It is possible for shareholders to take action and become lead plaintiff in the case. In order to do this, it is important to speak with the court by May 20, 2014. All of the necessary paperwork needs to be filed by that point.
For those stockholders who have questions about the lawsuit, legal process and how they may be affected, it is an option to speak with a member of the law office. Robert Willoughby is available to field questions, and he can be reached by telephone or email. If a shareholder makes contact via email, they should leave their telephone number, mailing address and the number of shares they acquired in the company.
Second lawsuit filed
Another law office filed a class action lawsuit in the same court against the leaders of General Motors Company.
Levi and Korsinsky, LLP, noted that the litigation was filed for many of the same reasons listed above. Another allegation noted was that the company knew about the vehicle defects years before the recalls, and did not take action at that time.
For shareholders who want to learn more about this situation, speaking with this law firm is also an option. Joseph Levi is the best person to reach, and he can be contacted by telephone or email.