The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of General Motors Company (GM) Investors

LOS ANGELES–(BUSINESS WIRE)–$STOCKSThe Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired General Motors Company (“GM” or the “Company”) (NYSE: GM) securities between February 2, 2022 and October 26, 2023, inclusive (the “Class Period”). GM investors have until February 6, 2024 to file a lead plaintiff motion.


If you are a shareholder who suffered a loss, click here to participate.

On October 2, 2023, NBC Bay Area reported that a pedestrian had been run over by one of GM’s driverless Cruise AVs, sustaining major injuries. On this news, GM’s stock price fell $1.09, or 3.5%, to close at $31.38 per share on October 3, 2023, thereby injuring investors.

Then, on October 5, 2023, the National Highway Traffic Safety Administration (“NHTSA”) held a public hearing to recommend a recall of over 50 million airbags that had been linked to potentially deadly explosions – at least 20 million of which were built into GM’s vehicles, with at least one having led to a confirmed fatality. On this news, GM’s stock price fell $0.73, or 2.4%, to close at $30.31 per share on October 5, 2023.

Then, on October 24, 2023, the California Department of Motor Vehicles announced the immediate suspension of Cruise’s deployment and driverless testing permits, stating that Cruise had “misrepresented . . . information related to [the] safety of the autonomous technology of its vehicles.” On this news, GM’s stock price fell $0.66, or 2.3%, to close at $28.56 per share on October 24, 2023.

Then, on October 26, 2023, Cruise announced that it would pause all of its AV operations across the country “while [it] take[s] time to examine [its] processes, systems, and tools.” On this news, GM’s stock price fell $1.33, or 4.7%, to close at $27.22 per share on October 27, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) GM downplayed concerns with its vehicles’ airbags and the need to record additional warranty accruals for related product recalls; (2) GM overstated the extent and efficacy of its efforts to analyze defects in its vehicles’ airbag inflators; (3) Cruise’s AVs and/or AV technology were less safe and well-developed than Defendants had led investors, regulators, and the general public to believe; (4) accordingly, regulatory approval of Cruise’s AV products was unsustainable and the prospects for widespread regulatory approval and adoption of Cruise’s AV products were overstated; (5) all the foregoing subjected GM to an increased risk of governmental and/or regulatory scrutiny and enforcement action, significant legal liabilities, product recalls, and reputational harm; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased GM securities during the Class Period, you may move the Court no later than February 6, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased GM securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

[email protected]
www.frankcruzlaw.com