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HMC.US
id: 574
Honda ADR Negligence Case
C.D. California
Court2:23-cv-00794
Case number03 Apr 2023
Lead Plaintiff motion deadlineOn September 28, 2022, a putative class action was filed against American Honda (HMC) alleging that it had sold thousands of vehicles equipped with a flawed Idle Stop feature.
Per the allegations in the class action complaint, after initially shutting off a vehicle’s engine, the Idle Stop system in the affected vehicles routinely fails to restart the engine as designed, leaving drivers unable to move their vehicles. The lawsuit further alleges that American Honda was fully aware of the defect before marketing the vehicles.
On this news, Honda’s ADS price fell 3.23%, seriously damaging shareholders.
Investors have grounds to suspect that the Company and its Leaders made false and misleading statements regarding the Company’s business, operations, and compliance policies, specifically:
- Honda had overstated the safety and effectiveness of the Idle Stop engine feature;
- Honda maintained deficient disclosure controls and procedures with respect to product quality and safety;
- Honda failed to prevent American Honda from marketing and selling thousands of vehicles that contained a defective Idle Stop feature;
- The foregoing conduct subjected the Company to a heightened risk of litigation, as well as financial and/or reputational harm.
Case Status
Dismissed
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Service Provider
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
28 September 2022
Filing date
02 February 2023
Lead Plaintiff Deadline
03 April 2023
Judge
Hon. George H. Wu