An investor sued General Motors Co and Chief Executive Officer Mary Barra because the company did not sufficiently take care of the problems in the company's vehicles that ultimately resulted to the recall of more than 3.1 million cars, Reuters reported citing court filings.
George Pio, the investor who lodged the lawsuit which is also asking for class action status, alleged that the vehicle recalls "triggered a sharp decline in the company's share price, wiping out billions in shareholder value." Pio did not detail how much damage it was seeking from GM, the report said.
GM had recalled over 3.1 million cars in the past couple of months in the US and other countries. Last month, the carmaker issued a recall of over 1.6 million vehicles because of a problem with the ignition switches which were related to the deaths of 12 individuals, the report said.
According to GM, they first knew of the issue in 2001 before the vehicles were produced. Pio's lawsuit, which was lodged in a Michigan federal court alleged that the carmaker's "illegal and immoral activities" in that span of time reduced the reputation for safety and quality that the company was known for. Aside from the investor's lawsuit, GM is also facing other cases filed against it in behalf of those who were affected by the recall of the vehicles, the report said.
The recall has also spawned a congressional inquiry. Barra is set to give her testimony before a panel in the US House of Representatives tasked with looking into the issue of the faulty ignition switches. The hearing is set for April 1, the report said.
A Reuters report on March 17 quoted Barra as saying in a video message on the Internet directed towards GM employees, "Something went wrong with our process in this instance, and terrible things happened."
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