Skip to Content

Garrett Motion, Inc.

Securities Class Action

  • Date:
  • 11/24/2020
  • Company Name:
  • Garrett Motion, Inc.
  • Stock Symbol:
  • GTXMQ
  • Class Period:
  • FROM 10/1/2018 TO 9/18/2020
  • Status:
  • Filed
  • Filing Date:
  • 9/25/2020
  • Court:
  • U.S. District Court: Southern District of New York

Case Finder

Locate any case using the tools below.

Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased Garrett Motion Inc. (Other OTC: GTXMQ) securities between October 1, 2018 and September 18, 2020 (the “Class Period”). Investors have until November 24, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 

Garrett designs, manufactures and sells turbocharger, electric-boosting and connected vehicle technologies for original equipment manufacturers and the aftermarket. In October 2018, the Company formed as a spin-off of the Transportation Systems business of Honeywell International Inc. (“Honeywell”).
 

On August 26, 2020, the Company disclosed 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 further stated that its “high leverage is exacerbated by significant claims asserted by Honeywell against certain Garrett subsidiaries under the disputed subordinated asbestos indemnity and the tax matters agreement.”
 

On this news, the Company’s share price fell $3.04, or 44%, to close at $3.84 per share on August 26, 2020.
 

On Sunday, September 20, 2020, Garrett announced that it had filed for Chapter 11 bankruptcy.
 

On Monday, September 21, 2020, the New York Stock Exchange (“NYSE”) announced that it would commence proceedings to delist Garrett’s stock from the NYSE after the Company’s disclosure that it had filed for bankruptcy.
 

On this news, the Company’s stock began trading over-the-counter and closed at $1.76 per share on September 22, 2020, a 12% decline from the closing price on September 18, 2020.
 

The complaint, filed on September 25, 2020, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that, due to its agreement to indemnify and reimburse Honeywell for certain asbestos-related liability, Garrett was saddled with an unsustainable level of debt; (2) that, as a result, Garrett had a highly leveraged capital structure that posed significant challenges to its overall strategic and financial flexibility; (3) that, as a result of the foregoing, Garrett’s ability to gain or hold market share was impaired; (4) that, as a result of the foregoing, the Company was reasonably likely to seek bankruptcy protection; and (5) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
 

If you purchased  Garrett securities during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.

The individual or institution below (“Plaintiff”) has reviewed and agrees to the Bragar Eagel & Squire, P.C. (“BESPC”) retainer agreement and authorizes BESPC to prosecute an action on Plaintiff’s behalf under the federal securities laws or applicable state laws to recover damages on behalf of investors in Garrett Motion. BESPC will prosecute the action on a full contingency basis and will forward all costs and expenses.
 

Case Finder

Locate any case using the tools below.

You may share a link to this page on any of the sites listed below or send link via email: