Investors Begin Suing General Motors Over Grossly Negligent Management Practices

A Missouri pension fund sued General Motors Co., its board of directors and its CEO over the handling of a recall of 2.6 million vehicles for ignition switch defects, contending it contributed to the sharp decline in the automaker's stock price.

The Police Retirement System of St. Louis sued in U.S. District Court in Detroit on Wednesday, accusing the executives of conspiring to "deceive the investing public." GM has repeatedly denied that its senior executives knew anything about the problem and exposed the company to liability. It accuses the GM officers and directors of being "reckless" or "grossly negligent."

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TheSteve - 4/24/2014 2:23:36 PM

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I guess none of those investors had heard GM was going bankrupt, and received billions of taxpayers' dollars in the form of bailouts from the federal government. With lack of that knowledge, they came to believe that GM was a viable, well-run giga-enterprise.

On the other hand, it's possible that GM investors knew of the bankruptcy and the bailouts, and the jumped on GM stock anyway, because they gambled they could turn a profit...and it didn't matter how! Bankrupt company? Needing billions in life-support? Reputation for lackluster products? Who cares? I'm putting my chips on GM! Now that investors realize they made a bad bet, they want to blame someone for it, rather than taking responsibility for their own bad decision.

GM Investors: Ya got what ya deserve.

PS: Bet you'll be back after the next round of taxpayer bailouts.

JDMUSMuscle - 4/24/2014 4:24:48 PM

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Tsk Tsk, America.

America, the country that wished to become like the European Union but failed.