05 June 2012

Class Action Suits Against GM Still Out There

Story first appeared in USA Today.

Q: Are there any securities class-action lawsuits filed on behalf of former General Motors shareholders who lost money from the bankruptcy restructuring?

A: Investors in the company formerly known as Motors Liquidation may feel as though they got run over.

These investors had owned shares of General Motors prior to the massive bankruptcy restructuring proceedings in 2009.

The company underwent the restructuring, then re-emerged as a new company called General Motors. This new company sold shares to the public in 2010, raised more than $16 billion from an initial public offering and was reborn, again, as General Motors (GM).

Investors in the pre-restructuring company formerly known as General Motors saw their shares get delisted and end up trading for pennies on an informal trading marketplace under the name Motors Liquidation.

Some investors in the old General Motors continue to be frustrated by the turn of events. And when investors feel wronged, they are able to turn to the courts.

Investors who want to check to see if any securities action lawsuits have been filed can get quick answers from the Stanford Law School Securities Class Action Clearinghouse. This site aggregates securities class-action lawsuits and helps investors see if a stock they own or owned might be involved in litigation.

Not surprisingly, General Motors has been the subject of several securities class-action lawsuits. The cases have been consolidated into a suit filed on Sept. 19, 2005, called Folksam Asset Management, et al. v. General Motors.

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