General Motors and Deloitte & Touche in $303 million securities class action
20 August 2008

Written by Sophie Baker

A securities class action brought against General Motors (GM) by German’s DekaBank has led to a cash settlement of $277 million.

In one of the biggest shareholder recoveries of 2008, the settlement will be paid to shareholders following an alleged misstatement of the auto company’s financials dating back to 2000. GM’s outside auditor, Deloitte & Touche, is contributing an additional $26 million in cash, to bring the total settlement value to $303 million.

The German funds involved – Deka Investment GmbH and Deka International S.A. – were represented by US securities law firms Grant & Eisenhofer and Labaton Sucharow.

“This is an extraordinary outcome for GM investors,” commented Jay Eisenhofer, partner at Grant & Eisenhofer. “To secure this level of recovery from General Motors in the current environment for the company is very telling – we are extremely pleased with the settlement and the outcome of this case for shareholders.”

In 2007, Grant & Eisenhofer secured a $322 million settlement with auto parts supplier Delphi Corp, in a case overseen by Judge Gerald Rosen in the Eastern District of Michigan. The GM settlement was also overseen by Judge Rosen.