$25 Million Claim against GM From the recent 2011 annual report,,,,,,,,,,,
GM LITIGATION UPDATE
Automodular has commenced a claim (the "Claim") against General Motors Company and General Motors of Canada Ltd. (collectively, "GM"), and Inteva Products, LLC and Inteva Products Canada ULC (collectively,"Inteva"). The Claim relates to a contract (the "Contract") between GM and Automodular for the sequencingand sub-assembly of components and modules for the Chevrolet Camaro.
By letter dated April 13, 2010, GM terminated the Contract effective September 20, 2010. GM has entered into a contract with Inteva for the same work that Automodular was performing under the Contract.
Automodular alleges GM's termination of the Contract was wrongful and in breach of the Contract. Automodular claims $20 million against GM for breach of contract and against Inteva for inducing breach of contract. Automodular also seeks punitive damages in the amount of $5 million. The statement of claim was issued on May 13, 2011 and served upon GM and Inteva.
The defendants have delivered statements of defence contesting the claims. The action has been commenced in the Ontario Superior Court of Justice.,,,,,,,,,,,,,,,,
AM exit and impairment costs were about $9 million or so due to this cancellation.
An out of court settlement is most likley here with AM to recover its exit costs.