Garrett Motion Inc. Class Action Lawsuit
- Company Name
- Garrett Motion Inc.
- Stock Symbol
- NYSE:GTX; OTC:GTXMQ
- Class Period
- October 1, 2018 to September 18, 2020
- Motion Deadline
- November 24, 2020
- Southern District of New York
The Garrett Motion Inc. class action lawsuit charges certain of Garrett Motion's executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Garrett Motion securities between October 1, 2018 and September 18, 2020, inclusive (the “Class Period”). The Garrett Motion class action lawsuit was commenced on September 25, 2020 in the Southern District of New York and is captioned Husson v. Garrett Motion Inc., No. 20-cv-07992.
Garrett Motion designs, manufactures, and sells turbocharger, electric-boosting, and connected vehicle technologies for original equipment manufacturers and the aftermarket. In October 2018, Garrett Motion formed as a spin-off of the Transportation Systems business of Honeywell International Inc.
The Garrett Motion class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) due to its agreement to indemnify and reimburse Honeywell for certain asbestos-related liability, Garrett Motion was saddled with an unsustainable level of debt; (2) as a result, Garrett Motion had a highly leveraged capital structure that posed significant challenges to its overall strategic and financial flexibility; (3) Garrett Motion’s ability to gain or hold market share was impaired; (4) Garrett Motion was reasonably likely to seek bankruptcy protection; and (5) as a result of the foregoing, defendants’ positive statements about Garrett Motion’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 26, 2020, Garrett Motion announced that it would explore alternatives to address certain balance sheet concerns, stating that its “leveraged capital structure poses significant challenges to its overall strategic and financial flexibility and may impair its ability to gain or hold market share in the highly competitive automotive supply market, thereby putting Garrett [Motion] at a meaningful disadvantage relative to its peers.” On this news, the price of Garrett Motion shares fell by more than 44%.
On Sunday, September 20, 2020, Garrett Motion announced that it had filed for Chapter 11 bankruptcy.
Finally, on September 21, 2020, the New York Stock Exchange (“NYSE”) announced that it would commence proceedings to delist Garrett Motion stock from the NYSE after Garrett Motion’s disclosure that it had filed for bankruptcy. On this news, the price of Garrett Motion shares fell by more than 12%, further damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Garrett Motion securities during the Class Period to seek appointment as lead plaintiff in the Garrett Motion class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Garrett Motion class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Garrett Motion class action lawsuit. An investor’s ability to share in any potential future recovery of the Garrett Motion class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Garrett Motion class action lawsuit or have questions concerning your rights regarding the Garrett Motion class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Garrett Motion class action lawsuit must be filed with the court no later than November 24, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.