Legal complaints continue to be filed in connection with defective ignition switches made by General Motors. The defective switches can cause cars to shut down suddenly, and 45 fatalities have been linked to the defects. The company has recalled about 2.6 million affected vehicles. Now, in addition to legal claims brought by families of the deceased, a class action lawsuit has been filed by GM investors.
GM told the government about the defective ignition switches in February 2014, and at that time the price of GM stock fell by more than 3 percent. Court records indicate that investors lost millions as a result.
The investors' class action complaint specifically claims that GM made "material misstatements and omissions" regarding the company's financial liabilities and the safety of the ignition switches. The complaint further alleges that GM disregarded the defects and should have recalled the vehicles many years before the recall occurred.
This most recent class action was brought by The New York State Teachers' Retirement Association, and potential members of the class include anyone who bought stock in the auto maker between November 2010 and July 2014. The lawsuit also combines previous claims brought by other investors.
A response to the complaint has yet to be filed, but a company spokesperson said that GM will move to have the case dismissed.
A recent news article has more on the individual parties involved in the class action.
If you have questions about representative and collective litigation, then our Class Action FAQ may prove helpful.