Delaware judge dismisses shareholder lawsuit over GM recall
Reuters
Published Jun 29, 2015 10:06PM ET
Updated Jun 29, 2015 10:25PM ET
Delaware judge dismisses shareholder lawsuit over GM recall
(Reuters) - General Motors Co (N:GM) said a judge in Delaware has dismissed a lawsuit by shareholders who wished to recoup losses stemming from the recall of millions of vehicles with an ignition switch defect linked to several deaths.
The judge's ruling on Monday said that the shareholders have not shown any proof that the company's directors acted in bad faith and dismissed the case.
The shareholders alleged that the directors breached their duties by failing to oversee the operations of the company.
The news comes a month after a U.S. bankruptcy judge put on hold dozens of lawsuits accusing the company of concealing an ignition-switch defect while the plaintiffs in those cases appeal an earlier ruling that found their cases were barred.
There are three other shareholder derivative actions, one in Wayne County, Michigan and two in Federal District Court for the Eastern District of Michigan that have been put on hold pending the outcome in Delaware.
GM said it was pleased the Delaware court dismissed the complaint and hopes the other pending cases are also dismissed, the company said in a statement.
GM shares closed down 3 percent at $33.23 on the New York Stock Exchange on Monday.
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Written By: Reuters
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