Brower Piven Encourages Investors Who Have Losses in Excess of $150,000 From Investment in General Motors Company to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the September 10, 2012 Lead Plaintiff Deadline -
Published on Monday, 16 July 2012 17:29 Written by TradersHuddle Staff
STEVENSON, Md., July 16, 2012 (GLOBE NEWSWIRE) -- Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of General Motors Company ("GM" or the "Company") (NYSE:GM) pursuant and/or traceable to the Company's November 18, 2010 Initial Public Offering ("IPO").
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than September 10, 2012 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.
The complaint accuses the defendants of violations of the Securities Act of 1933 by virtue of the Company's failure to disclose in connection with its IPO that it was not actively managing its production by monitoring its dealer inventory levels and that it would not, in 2011, improve inventory management to improve average transaction price. According to the complaint, after, in July 2011, it became known that GM had engaged in an extraordinary inventory build-up including 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 and that GM's truck inventory swelled to 122 days' worth of average sales (whereas, by comparison, GM's less profitable car inventory was limited to 60 to 70 days of average sales, Ford was maintaining only a 79 day inventory on comparable trucks, and GM's truck inventory during the years 2002-2010 had similarly averaged only 78 days of average sales), the value of GM shares declined significantly. Further, according to the complaint, after, in November 2011, GM dealer inventories were revealed to have been 30% higher than they were on September 30, 2010 (the end of the last full quarter before the November 18, 2010 IPO) and 62% higher than they were at the end of 2009, the value of GM shares again declined significantly.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
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