WAYNE, Pa.--(BUSINESS WIRE)--Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/gm) announces it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the common stock of General Motors Company (NYSE: GM) (“GM” or the “Company”) pursuant and/or traceable to the Company’s November 18, 2010 Initial Public Offering (the “IPO).
GM shareholders who purchased their shares pursuant and/or traceable to GM’s IPO should contact Richard A. Maniskas, Esquire at 877-316-3218 or at email@example.com to learn more about this matter.
The Complaint names GM, certain of its current and former officers and directors, and several underwriting investment banks as defendants and alleges that the Registration Statement and Prospectus issued by GM in connection with the IPO were false, misleading and in violation of the Securities Act of 1933. Specifically, the Complaint alleges, in connection with the IPO, and in order to assuage concerns that GM was predicting revenue based on production rather than actual sales, GM falsely assured investors that it was actively managing its production by monitoring its dealer inventory levels. Additionally, GM assured investors that in 2011 it would improve inventory management, which would improve average transaction price.
In July 2011, reports began to surface that GM had engaged in an extraordinary inventory build-up. In particular, an article published by Bloomberg on July 5, 2011 revealed that GM may have been unloading excessive inventory on dealers, a practice known as “channel stuffing,” in order to create the false impression that GM was recovering and sales and revenues were rising.
Indeed, on July 1, 2011, GM admitted on an investor conference call that it had substantially exceeded inventory targets. An article appearing on Barron’s on July 5, 2011 quotes Don Johnson, the VP of GM’s U.S. sales operations, who stated on an investor call that “[r]ight now we are at 122 day supply on full-size pickups. And this is slightly above where we would like to be. I acknowledge that our target is between 100 and 110 day supply but I think it's important that people realize why we are there and what we may do about it.” Thus, GM acknowledged that its target was above the 100 vehicle figure that industry experts considered excessive, and moreover GM exceeded even its own excessive target.
During the three months following the Bloomberg and Barron’s articles, GM’s share price fell from more than $31.00 to below $20.00, far below the IPO price of $33.00.
If you are a member of the class, you may, no later than September 10, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/gm or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at firstname.lastname@example.org. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.