The aftershocks of General Motors' ignition switch recall keep coming. First, the automaker announced that it saw an 86-percent decrease in net income for the first quarter of 2014 partially due to recall-related expenses. Now, a recent Securities and Exchange Committee filing from GM shows that it's facing a plethora of lawsuits and investigations, including one from the SEC itself.

GM admitted in the filing that as of April 22, it was facing 55 lawsuits in several US District Courts "alleging that consumers have been economically harmed by the recall and/or the underlying vehicle condition." There were also five cases filed in Canada in that time. In addition to these claims, "we are also the subject of various inquiries, investigations, subpoenas and requests for information from the US Attorney's Office for the Southern District of New York, Congress, NHTSA, the SEC, and a state attorney general in connection with our recent recalls."

Many of the pending lawsuits are from GM shareholders that claim the recall is harming the value of the company. These include a case in the US District Court in Detroit by the Police Retirement System of St. Louis. It charges not only the automaker, but also CEO Mary Barra, the chairman of the board, and two previous CEOs, according to The Detroit News.

So far, GM is attempting to limit the impact of lawsuits by having plaintiffs take up some cases with the remains of "Old GM" in court. According to the Detroit Free Press, the business could face several billion dollars in fines and settlements by the time the matter is complete. For comparison, Toyota paid out over a billion dollars just to settle the criminal probe into it unintended acceleration recall.

Autoblog reached out to the automaker and was given no comment – its policy for ongoing legal matters. "GM intends to vigorously defend all of these cases," said the SEC filing.


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  • 18 Comments
      Jeff Gilleran
      • 8 Months Ago
      Gotta be tough being the CEO of GM right now. Don't envy Mary Barra one bit.
      Israel Isassi
      • 8 Months Ago
      Something tells me at least one new government agency is about to be created.
      churchmotor
      • 8 Months Ago
      Feel sorry for the suckers that bought GM stock.
      BrianD
      • 8 Months Ago
      I like that the former CEO bailed out just in time to hand this problem to the new one.
      Larry Litmanen
      • 8 Months Ago
      Every public company is required by law to disclose all major lawsuits the company is involved in or expects to be involved in, as long as they are material. These are more than material and since company knew that they could expect this issue to lead to a major litigation and did not disclosed it they basically lied to the investors. Since every company files 4 reports a year and GM knew this for let's say 5 years(it was more than that), that's 20 fillings to investors that involved a complete lie. This is pretty close to Enron if you think about it, Enron was hiding liabilities in hidden companies that it owned, they disclosed them but they hid them. GM simply never disclosed anything. Let's say there are 300 victims, let's say GM settles with them, each victim will want say $2M, so that's $600M, lawyers will want about as much so original settlement will be around $900M or even more. As i recall recently GM made about $900M in last filling to SEC so litigation will probably more than wipe out everything the company made in one quarter.
      m_2012
      • 8 Months Ago
      Bailout in 3, 2, 1...
      TruthHertz
      • 8 Months Ago
      Any portfolio manager that bought GM stock was an idiot to begin with. Ford stock has been on a continuous rise and will continue to do so as they pay off the assets they leveraged to avoid GOVERNMENT OWNERSHIP. Ford also has some exciting innovative stuff in the pipeline unlike the forgettable Malibu, warmed over Silverado, and massive recall fallout.
      bootsnchaps60
      • 8 Months Ago
      Seems like new GM is overdue in asking the bankruptrcy court about its liability for what occurred under old GM.
      ksrcm
      • 8 Months Ago
      It is amazing how many people thought that giving the baseball bat into the teeth of creditors with "Old GM - pound sand" will magically right up to 30 years of wrong. It works in video games where you have Reset Game-Full Ammo Count-5 new lives but it hardly ever works in the real world. I'm kinda sorry for people working there, especially those that got their hopes up high since 2010 or so.
      Bert
      • 8 Months Ago
      GM is really now called China GM. 70% of their cars are made from China made parts. Check it out on You Tube GM Chairman nd GM CHina
      Riley C.
      • 8 Months Ago
      I don't think GM will be making a lot of money for the rest of the year. Plus, getting all of these planned organizations inside of GM created won't be cheap either.
      malgu
      • 8 Months Ago
      If shareholders are really concerned about the value of the company, they wouldn't be filing lawsuits against GM, which would only lower their value further.. shareholders are just trying to take advantage for personal gain
        clquake
        • 8 Months Ago
        @malgu
        Fraud is something that affects the shareholders. If you bought shares based on a clean report, and you find out later that they were hiding things that would affect the company negatively, you would be pretty upset.
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