Pomerantz LLP announces that a class action lawsuit has been filed against General Motor Company (“GM” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Eastern District of Michigan, and docketed under 17-cv-12185, is on behalf of a class consisting of investors who purchased or otherwise acquired GM securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts. The Company offers vehicle protection, parts, accessories, maintenance, satellite radio, and automotive financing. General Motors provides its vehicles and services worldwide.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company installed at least three distinct defeat devices in over 700,000 trucks with Duramax diesel engines from 2011 to 2016 in order to cheat emissions tests in the U.S.; (ii) consequently, the GM trucks at issue emit up to five times the legal limit of nitrogen oxide pollutants; and (iii) as a result of the foregoing, GM’s public statements were materially false and misleading at all relevant times.
On May 25, 2017, Bloomberg reported that a consumer lawsuit had been filed against GM for installing multiple defeat devices in two models of heavy-duty trucks with the Duramax diesel engine from 2011-2016. The lawsuit alleges that GM’s unlawful, unfair, deceptive, and otherwise defective emission controls affect model year 2011-2016 GM Sierra 2500HD and 3500 HD trucks and GM Silverado 2500 HD and 3500 HD trucks. According to the lawsuit, extensive testing of a 2013 Silverado 2500 diesel—a vehicle representative of the class of Duramax diesel engines present in both the Chevrolet Silverado and GMC Sierra model years 2011 to 2016—indicated as follows: (1) the vehicle produces emissions above the certification tests at temperatures above the certification range (86ºF); (2) the vehicle produces higher emissions when temperatures are below the certification test range (68ºF); and (3) the vehicle produces higher emissions occur after the vehicle has been run for 200-500 seconds of steady speed operation on average by a factor of 4.5 in all temperature windows. These test results confirmed the presence of three distinct defeat devices, which enable the vehicle to meet emissions standards in the test temperature range, while allowing two to five times the legal amount of nitrogen-oxide pollutants to be emitted at all other times.
On this news, GM’s share price fell $0.60, or 1.81%, to close at $32.60 on May 25, 2017.