GM Stock Slides on Federal Appeals Court Ruling
NEW YORK (TheStreet) -- Shares of General Motors (GM) - Get Report are slumping 0.55% to $30.43 in mid-afternoon trading on Wednesday after a federal appeals court decided that the automaker must defend hundreds of lawsuits tied to ignition switch defects.
The court determined that the lawsuits were not automatically barred under GM's 2009 bankruptcy sale, Bloomberg reports.
"New GM essentially asks that we reward debtors who conceal claims against potential creditors. We decline to do so," the appeals court stated in its ruling. "Due process applies even in a companyʹs moment of crisis."
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
GM's strengths such as its compelling growth in net income, revenue growth, notable return on equity, attractive valuation levels and impressive record of earnings per share growth outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: GM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.