Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of General Motors Company (GM) Investors

NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Michigan on behalf of those who acquired General Motors Company (“GM” or the “Company”) (NYSE: GM) securities during the period from February 2, 2022 through October 26, 2023, inclusive. Investors have until February 6, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Cruise LLC (“Cruise”) is GM’s majority-owned global segment responsible for the development and commercialization of autonomous vehicle (“AV”) technology. On October 2, 2023, NBC Bay Area reported that a pedestrian suffered major injuries after she was run over by and pinned beneath a driverless Cruise AV. NBC Bay Area further reported that Cruise was cooperating with law enforcement regarding the incident. On this news, the price of GM shares declined by $1.09 per share, or approximately 3.36%, from $32.47 per share to close at $31.38 on October 3, 2023.

On October 5, 2023, the National Highway Traffic Safety Administration held a public hearing to recommend a recall of more than 50 million airbag inflators that have been linked to potentially deadly explosions. Citing people familiar with the matter, The Wall Street Journal subsequently reported that at least 20 million of GM’s vehicles were built with the defective airbag inflators in question, at least one of which had led to a confirmed fatality. On this news, the price of GM shares declined by $0.73 per share, or approximately 2.35%, from $31.04 per share to close at $30.31 on October 5, 2023.

On October 24, 2023, the California Department of Motor Vehicles announced the immediate suspension of Cruise’s deployment and driverless testing permits. In suspending Cruise’s permits, the California DMV cited, among other issues, that Cruise “ha[d] misrepresented . . . information related to [the] safety of the autonomous technology of its vehicles.” On this news, the price of GM shares declined by $0.66 per share, or approximately 2.26%, from $29.22 per share to close at $28.56 on October 24, 2023.

On October 26, 2023, Cruise announced via a post on X that it would pause all of its AV operations across the country in order to examine its processes, systems, and tools. On this news, the price of GM shares declined by $1.33 per share, or approximately 4.66%, from $28.55 per share to close at $27.22 on October 27, 2023.

The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) GM downplayed concerns with its vehicles’ airbags and the need to record additional warranty accruals for related product recalls; (ii) GM overstated the extent and efficacy of its efforts to analyze defects in its vehicles’ airbag inflators; (iii) 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; (iv) 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; and (v) 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.

If you purchased or otherwise acquired GM securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [e-mail], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.

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