News Summary
Kahn Swick & Foti, LLC has begun a probe into General Motors following multiple airbag recalls and a securities class action lawsuit. The investigation focuses on potential breaches of fiduciary duty by GM executives amidst growing concerns over safety issues tied to airbag defects. With over 20 million vehicles at risk, the financial impact on GM could be significant. The probe aims to determine whether there have been violations of corporate governance that harmed shareholder interests as the company confronts mounting legal challenges.
New Orleans, Louisiana – Kahn Swick & Foti, LLC has initiated an investigation into General Motors Company (NYSE: GM) due to a series of problematic airbag recalls and a resulting securities class action lawsuit against the automotive giant. The investigation is being led by former Louisiana Attorney General Charles C. Foti, Jr., Esq., focusing on possible breaches of fiduciary duties and violations of state or federal laws by GM’s executives.
General Motors has faced significant scrutiny linked to defects in airbag components across its vehicle line, with issues surfacing as early as November 2020. These ongoing defects have already resulted in various global lawsuits filed against the company, indicating a severe impact on GM’s reputation and financial stability. Notably, Cruise LLC, GM’s majority-owned autonomous vehicle segment, has also been implicated in these troubles.
On October 5, 2023, the National Highway Traffic Safety Administration (NHTSA) conducted a public hearing regarding a recall recommendation affecting over 50 million airbag inflators produced by ARC Automotive. Alarmingly, GM is highly exposed to this potential recall, with approximately 20 million of its vehicles containing the ARC airbag inflator that is under scrutiny. This extensive recall could lead to further financial repercussions for the company.
In response to the growing concerns related to safety and consumer trust, Cruise LLC announced on October 26, 2023, that it would suspend its autonomous vehicle operations. This temporary halt is aimed at reviewing its processes and rebuilding public confidence in its technology.
Following the suspension of operations, a securities class action lawsuit was filed against GM and several executives, alleging that the company failed to disclose critical information regarding the recall issues and their implications. A court has denied GM’s motion to dismiss this lawsuit, allowing it to continue as GM faces mounting legal challenges. The lawsuit is focused on potential damages suffered by investors due to the lack of transparency around the airbag recalls and their implications for the company’s stock value.
Kahn Swick & Foti, LLC’s investigation is designed to determine whether GM’s officers and directors have failed in their responsibilities to shareholders. The law firm’s inquiry is seeking to establish if there were violations of fiduciary duties or other legal infractions, potentially reinforcing claims made in the ongoing lawsuit.
Individuals with relevant information or long-term shareholders of GM are encouraged to reach out to KSF for assistance. Those interested can contact the firm at 1-833-938-0905 or via email to KSF Managing Partner Lewis Kahn.
Kahn Swick & Foti, LLC is a recognized boutique law firm specializing in securities litigation. The firm has achieved significant prominence in the field, being ranked among the top 10 firms nationally based on total settlement value by SCAS. KSF represents a range of clients, including both institutional and retail investors, who are seeking recovery for investment losses linked to alleged corporate fraud.
This ongoing investigation into General Motors marks another chapter in the company’s challenges with safety and governance, highlighting the critical intersection of automotive safety issues and corporate accountability.
Deeper Dive: News & Info About This Topic
- Business Wire: GM Investigation by Kahn Swick & Foti, LLC
- CBS News: GM Recall for Engine Failure Risk
- Union Rayo: GM Engine Defect Lawsuit
- Reuters: GM Vehicle Recall Over Engine Issue
- Google Search: General Motors Airbag Lawsuit
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
