Class Action Suit?Gmac?

[Ghost Dog]

http://finanzen.net/news/news_detail.asp?NewsNr=360982

More specifically, the Complaint alleges that Defendants sold an aggregate of up to $15 billion of GMAC SmartNotes by means of a Registration Statement, Prospectus and Pricing Supplements that contained materially false and misleading statements and/or omitted material facts necessary to make the statements in those documents accurate. In particular, defendants failed to disclose that GM's financial and operational outlook were poor and that certain of its financial statements for the years just prior to the sale of GMAC's SmartNotes were materially overstated. Because the credit ratings of GM and GMAC were inextricably intertwined, the financial and operational performance of GM directly affected the credit rating of GMAC. By failing to disclose the material adverse facts about GM, GMAC and the other defendants were able to issue and sell the SmartNotes based on GMAC's materially inflated credit ratings, materially reducing GMAC's borrowing costs. As such the SmartNotes were overpriced upon sale, and purchasers paid too much for the SmartNotes and/or received too little interest based on the GMAC's materially inflated credit rating.

On March 16, 2005, GM began to disclose material, adverse information about its financial performance and outlook. Thereafter, the three credit ratings agencies all downgraded the debt of GMAC to below investment grade, causing loss to purchasers of GMAC SmartNotes during the Class Period.

Plaintiff seeks to recover damages on behalf of the Class of GMAC SmartNote purchasers. It is represented by the Weiser Law Firm and Jacob A. Goldberg Esq. LLC. The Weiser Law Firm and Jacob A. Goldberg, Esq. LLC prosecute class actions in both state and federal courts throughout the country.

If you purchased GMAC SmartNotes during the Class Period, you may, if you choose, not later than 60 days from today, move the Court to serve as lead plaintiff of the Class. A lead plaintiff is a representative party that acts on behalf of other Class members in directing the litigation. To be appointed lead plaintiff, the Court must determine that your claim is typical of the claims of the Class members and that you will adequately represent the interests of the Class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery, however, is not affected by your decision to seek to serve as a lead plaintiff in this action.

[thegriffon]

Wait—this law firm is still touting for a lead plaintiff? More opportunistic bottom-feeders.

[Newbiewar]

i'm confused...