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 rmaniskas@rmclasslaw.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 rmaniskas@rmclasslaw.com.
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.
