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Investors Claim GM Directors are Liable for Ignition Switch Claims
More than a dozen current and former General Motors Co. board members should be held accountable for the company's delayed recall of 2.6 million faulty ignition switches last year, several pension funds argue.
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More than a dozen current and former General Motors Co. board members should be held accountable for the company's delayed recall of 2.6 million faulty ignition switches last year, several pension funds argue.
Their lawyer told a Delaware Chancery Court judge on Tuesday the GM board showed a "systemic failure to supervise that amounts to a conscious dereliction of duty" between 2010 and 2012, Bloomberg News reports.
The judge promises a quick ruling on the group's motion to allow its lawsuit to move forward. GM wants the case thrown out.
Bloomberg says the judge told the funds that a failed monitoring mechanism doesn't necessarily indicate a breach of the board's duties to shareholders. He says the investor lawsuit must show the board was consciously operating against shareholders' interest.
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