General Motors has agreed to settle a claim brought by the NewYork State Teachers’ Retirement System for $300 million, accordingto court documents.

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Read: Boeing settles for $57million

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The claim alleged the teachers’ pension fund and anyone investedin GM stock between November 17, 2010 and July 24, 2014 lostmillions, as a belated recall affecting millions of cars withdefective ignition switches drove GM’s stock value down by morethan $1 billion.

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Read: Law firms receive more than $50 million fromTussey vs. ABB

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The company also made material misrepresentations and omissionsabout its liabilities, internal controls and commitment to safety,according to the initial complaint, which ran nearly 600 pages.

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Read: JP Morgan Chase to pay $150million

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GM agreed to settle the claim before a U.S. District Court forthe Eastern District of Michigan ruled on the company’s motion todismiss the case. As a part of the settlement, GM denies anywrongdoing.

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From the beginning of the class period, GM and senior executivesrepeatedly reported that its recall liabilities were accuratelystated under Generally Accepted Accounting Principles.

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But starting in 2014, GM made a series of corrective disclosuresshowing the company knew of safety defects in the ignition switchesin millions of cars that should have been recalled “many yearsearlier,” court papers said.

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The complaint alleged that GM knew of some of the defects for aslong as 10 years before some of the involved cars wererecalled.

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The New York State Teachers’ Retirement System pension fund wasthe lead plaintiff in the class.

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The plan serves more than 426,000 participants andbeneficiaries, and had over $108 billion assets by the end of June2014, making it one of the 10 largest public pension plans in the country.Its funded ratio was 92.9 percent for the period ending June2014.

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In November of 2010, GM issued nearly $16 billion of commonstock, as the company emerged from bankruptcy and a governmenttakeover.

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NYSTRS reportedly owns about $98 million in GM shares.

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Trustees claimed the fund lost more than $6 million in the valueof its holdings during the class period.

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GM has also settled more than 1,300 death and injury civilclaims resulting from the faulty ignition switches, and is paying a$900 million fine to the government to avoid prosecution.

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The proposed settlement does not say how much will be collectedby NYSTRS. The certified class consists of any person or entitythat purchased shares of GM from November 17, 2010 to July 24,2014.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.