SAN DIEGO–(BUSINESS WIRE)–Shareholder rights law firm Robbins LLP announces that a purchaser of Garrett Motion Inc. (OTC: GTXMQ) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between October 1, 2018 and September 18, 2020. Garrett Motion Inc. manufactures and sells turbocharger, electric-boosting and connected vehicle technologies for original equipment manufacturers and the aftermarket. The Company formed as a spin-off of Honeywell International Inc. in October 2018.
If you suffered a loss due to Garrett Motion Inc.’s misconduct, click here.
Garrett Motion Inc. (GTXMQ) Misled Shareholders
According to the complaint, defendants failed to disclose to investors that Garrett’s agreement to indemnify and reimburse Honeywell for certain asbestos-related liability had saddled the Company with an unsustainable level of debt that posed significant challenges to the its strategic and financial flexibility and impaired its ability to gain or hold market share. On August 26, 2020, Garrett announced that its “leveraged capital structure poses significant challenges to its overall strategic and financial flexibility and may impair its ability to gain or hold market share in the highly competitive automotive supply market, thereby putting Garrett at a meaningful disadvantage relative to its peers.” Garrett pointed to “an inappropriate capital structure imposed by Honeywell on Garrett as part of its 2018 spin-off” as a contributing factor to its inability to “distribute value to its shareholders in the future.” On this news, Garrett’s share price fell over 44%. On September 20, 2020, Garrett announced it had filed for Chapter 11 bankruptcy. The next day, the NYSE announced it would commence proceedings to delist the Company’s stock. On this news, Garrett’s stock began trading over-the-counter and closed at $1.76 per share on September 22, 2020.
If you purchased Garrett Motion Inc. (GTXMQ) between October 1, 2018 and September 18, 2020, you have until November 24, 2020, to request the court to appoint you lead plaintiff for the class.
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against Garrett Motion In. settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.