PONTIAC, Mich. - A class blames misrepresentations by Ally Financial, formerly known as GMAC, and its underwriters for the more than 32 percent drop in share value two years after the subprime car-loan business earned $2.4 billion going public.
The complaint comes two months after Ally reached a $52 million settlement with the United States. In addition to 13 current and former Ally officers, the complaint takes aim at seven underwriters: Citigroup Global Markets, Goldman Sachs and Co., Morgan Stanley and Co., Barclays Capital, Merrill Lynch Pierce Fenner and Smith, Deutsche Bank Securities and JPMorgan Securities.
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