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HMC.US
id: 574

Honda ADR Negligence Case

C.D. California
Court
23-CV-00794
Case number
03 Apr 2023
Lead Plaintiff motion deadline
On 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.

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
Collecting participants…

Honda Motor Co Ltd ADR

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through fou...

    Ticker
    HMC.US
    ISIN
    US4381283088
    Sector
    Consumer Cyclical
    Industry
    Auto Manufacturers
    Country
    USA
    Address
    1-1, Minami-Aoyama, 2 chome, Tokyo, Japan, 107-8556