GM Forks Over $277m in Shareholder Lawsuit. Second Case Simmers

gm forks over 277m in shareholder lawsuit second case simmers

Having escaped The Bored of Directors' Night of the Soft Pillows, GM CEO Rick Wagoner once again watches as his employer takes a hit to its [somewhat nebulous] bottom line. Reuters reports The General is shelling-out $277m to settle a shareholders' lawsuit "contending the automaker made false and misleading statements." (Presumably, in its accounts, rather than generally.) You may recall there was a while there when GM restated its earnings more often than a squealing bookie– which is a bit bizarre (or not) as Wagoner ascended the throne from the Chief Financial Officer slot. Anyway, "In the regulatory filing [which exposed the payoff], GM also disclosed the tentative settlement of a separate lawsuit brought by shareholders, agreeing to make unspecified changes to its corporate governance rules. GM also agreed not to oppose plaintiffs' attorney fees of up to $7.5 million in that case." Unspecified changes? Hang on; is this a publicly-held company or not? And if you think this is bad, wait 'til you see the legal bills when the artist once known as the world's largest automaker files for C11.

Join the conversation
4 of 12 comments
  • OTTO SALES OTTO SALES on Aug 08, 2008

    Is there a chance these 'STOCKHOLDER'S" got what they deserved?Where can I loan money and receive 400% return?With out breaking a sweat?Screw these "stockholders".Lets face you were jerked off for a long time!Some one smarter than you discovered it and you had the balls to whine? And now you get on the bus for what?The smart ones here again?Please everyone rise ! Ladies and Gentlemen meet your lawyers! Oh the answer to the first question? OIL STOCKS !You pussies would cry about that also.

  • TBryant TBryant on Aug 10, 2008

    A large part of this settlement, if not all, will be paid by GM's insurers. These same insurers have been paying, and will continue to pay, those claims that arise out of GM's negligence, mismanagement, or any other "unintentional" act that causes damage. The question is whether a series of negligence decisions that lead to the failure of a once great company, when grouped together, could, collectively, amount to an intentional act? A few more two hundred million dollar settlements, and a few more pissed off insurance companies, should get us an answer.

  • Capeplates Capeplates on Aug 10, 2008

    Shareholders in the UK aren't so lucky - a bank hits the wall due to mismanagement and the government steps in - first act suspend all shares and refuse to cough up to the holders. Oh to have the courts of the USA over here

  • Jaje Jaje on Aug 11, 2008

    I just got a notice for class action for faulty or inaccurate speedometers on 2003-2005 GMT 800 trucks.