A number of pension funds have filed suit against General Motors Co. in a Delaware court. The investors are also suing the automaker’s board of directors, saying they were asleep at the switch while the company produced cars with faulty ignition systems that led to a great number of fatal accidents. The investors are claiming that more than a dozen current and former GM directors failed to adequately oversee the company’s operations for about three years starting in 2010 and had no system in place to ensure the Detroit-based company produced safe vehicles or reported problems to government regulators. The investors claim there was a total systemic failure to supervise that amounts to a conscious dereliction of duty. Delaware Chancery Court Judge Sam Glasscock, III, heard arguments in the case last month.
Source: Claims Journal By Jeff Feeley
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