General Motors Company is an automotive manufacturing company that designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. The Company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.

Cruise is GM’s majority-owned global segment responsible for the development and commercialization of AV technology. Cruise has secured various testing and driving permits for its AVs on the ostensible premise that those AVs were sufficiently safe for such purposes.

An underlying securities fraud class action complaint has survived a motion to dismiss. That complaint alleges that GM, through certain of its officers, made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) GM downplayed concerns with its vehicles' airbags and the need to record additional warranty accruals for related product recalls; (ii) GM overstated the extent and efficacy of its efforts to analyze defects in its vehicles' airbag inflators; (iii) Cruise's AVs and/or AV technology were less safe and well-developed than Defendants had led investors, regulators, and the general public to believe; (iv) accordingly, regulatory approval of Cruise's AV products was unsustainable and the prospects for widespread regulatory approval and adoption of Cruise's AV products were overstated; (v) all the foregoing subjected GM to an increased risk of governmental and/or regulatory scrutiny and enforcement action, significant legal liabilities, product recalls, and reputational harm; and (vi) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.

On March 28, 2025, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

In so doing, the court found that: "The allegations collectively and cogently show that he directed Cruise 'off course' — by either ignoring or refusing to acknowledge numerous signs that Cruise AVs frequently both relied on remote operator intervention and executed improper [dynamic driving tasks] fallbacks, while attempting to minimize his employees' and the media's concerns about these deficiencies and to protect from scrutiny a technology that was key to both Cruise and GM,"

Moreover, "As Cruise's COO [West] who paid particular attention to Cruise's operations, including AV reliability, and who managed and received detailed information through various means about the frequent alleged failures, malfunctions, and risky driving behavior of Cruise AVs, West likely had deep knowledge or at least ample notice about how Cruise AVs were allegedly executing improper DDT fallbacks and relied on remote operator intervention," Judge Kumar said. "Given this, his work with Vogt to address widespread internal concerns about the AVs' unsafe driving, and his departure from Cruise as a direct result of his involvement in the October 2 [2023] crash and Cruise's response to it, it is reasonable to infer that West at least recklessly disregarded the falsity” of certain of his statements.

If you purchased GM shares (NYSE: GM) prior to February 2, 2022, and still hold shares today, you are encouraged to contact Joshua Grabar at [email protected], or call 267-507-6085.  You may be able to seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.