General Motors Settles $300 Million Class Action Led By New York Teachers’ Pension

The New York State Teachers’ Retirement System (NYSTRS) was the lead plaintiff in a class-action suit against General Motors seeking reimbursement for investment losses as a result of the car company’s ignition switch recall controversy.

GM settled the suit this week for $300 million. It’s not known how much of that settlement will go to NYSTRS.

NYSTRS owns about $98 million in GM stock, according to BenefitsPro.

From BenefitsPro:

The claim alleged the teachers’ pension fund and anyone invested in GM stock between November 17, 2010 and July 24, 2014 lost millions, as a belated recall affecting millions of cars with defective ignition switches drove GM’s stock value down by more than $1 billion.

The company also made material misrepresentations and omissions about its liabilities, internal controls and commitment to safety, according to the initial complaint, which ran nearly 600 pages.

GM agreed to settle the claim before a U.S. District Court for the Eastern District of Michigan ruled on the company’s motion to dismiss the case. As a part of the settlement, GM denies any wrongdoing.

[…]

The complaint alleged that GM knew of some of the defects for as long as 10 years before some of the involved cars were recalled.

The New York State Teachers’ Retirement System pension fund was the lead plaintiff in the class.

Trustees claimed the fund lost more than $6 million in the value of its holdings during the class period.

NYSTRS is one of the 10 largest pension funds in the United States.

Photo by Joe Gratz via Flickr CC License