GM Faces Class Action Suit Over SmartNotes

Law360, New York (January 18, 2006, 12:00 AM EST) -- General Motors Corp. and 11 investment banks have become the targets of a class action lawsuit over the sale and distribution of "materially overpriced" SmartNotes, a debt instrument that the automotive giant uses to access the capital of thousands of small investors.

The suit comes less than a month after a group of shareholders slammed GM with another class action lawsuit that alleged the company had artificially inflated the prices of its stocks.

The new case, which targets financing arm General Motors Acceptance Corporation (GMAC), is...
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