Having escaped The Bored of Directors' Night of the Soft Pillows, GM CEO Rick Wagoner once again watches as his employer takes a hit to its [somewhat nebulous] bottom line. Reuters reports The General is shelling-out $277m to settle a shareholders' lawsuit "contending the automaker made false and misleading statements." (Presumably, in its accounts, rather than generally.) You may recall there was a while there when GM restated its earnings more often than a squealing bookie– which is a bit bizarre (or not) as Wagoner ascended the throne from the Chief Financial Officer slot. Anyway, "In the regulatory filing [which exposed the payoff], GM also disclosed the tentative settlement of a separate lawsuit brought by shareholders, agreeing to make unspecified changes to its corporate governance rules. GM also agreed not to oppose plaintiffs' attorney fees of up to $7.5 million in that case." Unspecified changes? Hang on; is this a publicly-held company or not? And if you think this is bad, wait 'til you see the legal bills when the artist once known as the world's largest automaker files for C11.
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Come on Bob, a measley 1/4 Billion and you want to make an issue of it. GM loses this every week, it’s like having leap year a five week month. When you have masters of the universe running a company particulary CPA’s turned CEO’s you want to make an issue of such a pittance. Chump change in the grand scheme of things. As Everett Durkson the former mid western Senator said about Washington: A billion here a billion there next thing your talking about real money. Well this is not real money, it is only a paper accounting transaction. No foul no harm. Now can you please let us at GM get on with losing the next real billion instead of carping about these miniscule petty cash expenditures.
Lawsuit Settlement: $277,000,000
Keeping Delphi Afloat: $350,000,000
Restructuring Adjustments: $900,000,000
Having a Bankruptcy-Proof Pension: Priceless.
Speaking of lawsuits against GM, whatever happened to the case of the woman whose 1979 Chevy Malibu gas tank exploded? The case was back in 1999 and the original judgement against GM was for $4.9B, which was later lowered to just over a $1B. A few articles I could find on the subject…
http://www.cnn.com/US/9907/09/gm.verdict/
THAT is funny.
Even Lutz is ROTFLHAO.
I am suing over that whole damn Beat thing. Corporations/individuals have been sued for less.
NickR, You might reconsider that. If you win, they could pay you off in Aveos.
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“Night of Soft Pillows.” Best thing I’ve read today. Conjures up visions of Monty Python’s Spanish Inquisition routine featuring “The Comfy Chair!”
Night of the Soft Pillows!!! Killer stuff R.F..
OMG, If i got paid off in Aveos I think i would just douse them in gasoline and enjoy watching them burn!
I would get far more enjoyment out of that too,
Imagine driving that thing, I got one as a rental once, after 25 miles i brought it back and spent my own money to upgrade because my company refused to purchase a bigger car!
At 60 mph I was getting blown around like a leaf! and it wasn’t that windy either.
Is there a chance these ‘STOCKHOLDER’S” got what they deserved?Where can I loan money and receive
400% return?With out breaking a sweat?Screw these “stockholders”.Lets face you were jerked off for a long time!Some one smarter than you discovered it and you had the balls to whine?
And now you get on the bus for what?The smart ones here again?Please everyone rise !
Ladies and Gentlemen meet your lawyers!
Oh the answer to the first question?
OIL STOCKS !You pussies would cry about that also.
A large part of this settlement, if not all, will be paid by GM’s insurers. These same insurers have been paying, and will continue to pay, those claims that arise out of GM’s negligence, mismanagement, or any other “unintentional” act that causes damage.
The question is whether a series of negligence decisions that lead to the failure of a once great company, when grouped together, could, collectively, amount to an intentional act? A few more two hundred million dollar settlements, and a few more pissed off insurance companies, should get us an answer.
Shareholders in the UK aren’t so lucky – a bank hits the wall due to mismanagement and the government steps in – first act suspend all shares and refuse to cough up to the holders. Oh to have the courts of the USA over here
I just got a notice for class action for faulty or inaccurate speedometers on 2003-2005 GMT 800 trucks.