Why General Motors (GM) Is Down Today

NEW YORK (TheStreet) -- General Motors  (GM) dipped 2.42% to $34.29 at 12:31 p.m. on Tuesday after a former Delphi  (DLPH) employee filed a wrongful-death lawsuit against the U.S. automaker and his former employer.

The suit, filed by Steve Smith in Alabama state court on Monday, claims GM concealed a faulty ignition switch, provided by Delphi, that was responsible for a crash that killed his daughter, Aubrey Wallace Williams. According to Reuters, the suit claims the girl was driving a 2006 Chevrolet Cobalt on an Alabama highway when the ignition switch failed, which caused the engine to shut off and turned off the power. Williams could not control the car and crossed into another lane, where an 18-wheeler truck struck the vehicle. Williams was killed instantly, according to the lawsuit. 

The suit does not specify how much Smith is seeking in damages.

GM recalled 1.6 million vehicles in February even though it knew about ignition switch issues as early as 2001. The company provided dealers with suggested solutions in 2005. GM has tied the ignition switch problem to 12 deaths and has apologized for the way it has handled the recall.

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GM Chart

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