General Motors (GM) Defect Cruise AV Systems Case

• Cruise announced via X that it paused all AV operations across the US after multiple safety issues.

• $GM fell 4.66%, losing $1.8 billion of its shareholder value.

• One of the affected investors already filed the initial claim against GM & Co in Michigan court.

Then, on October 26, 2023, Cruise announced via X that it would pause all of its AV operations across the country “while we take time to examine our processes, systems, and tools and reflect on how we can better operate in a way that will earn public trust.”

On this news, $GM fell 4.66% and lost $1.8 billion of its market capitalization, seriously damaging shareholders.

• On October 24, 2023, the California Department of Motor Vehicles announced the immediate suspension of Cruise’s deployment and driverless testing permits., stating that Cruise had misrepresented information related to the safety of the autonomous technology of its vehicles. On this news, $GM fell 2.26%.

• On October 5, 2023, the National Highway Traffic Safety Administration recommended a recall of 50 million airbag inflators that have been linked to potentially deadly explosions.

• The WSJ reported that at least 20 million of GM’s vehicles were built with the defective airbag inflators in question, at least one of which had led to a confirmed fatality. On this news, $GM fell 2.35%.

• On October 2, 2023, NBC Bay Area reported that a pedestrian suffered major injuries after she was run over by and pinned beneath a driverless Cruise AV. On this news, $GM fell 3.36%.

Now, investors have reasons to suspect GM of hiding true information about the safety of Cruise AV systems, which led to their losses when revealed. One of the affected shareholders has already filed the initial complaint in Michigan court.