Congressional investigators Sunday said General Motors (GM) approved ignition switches for cars that have been linked to at least a dozen deaths even though the company knew the switches didn't meet GM specifications. The House Energy and Commerce Committee released a memo detailing the new information from officials at Delphi Automotive, which supplied the switches to General Motors. Congressional investigators are also looking into why regulators passed up opportunities to open formal probes into the cars in question after complaints started coming in. GM CEO Mary Barra will testify before Congress tomorrow and Wednesday in the first public hearings on GM's handling of recalls related to the faulty switches.
Johnson & Johnson (JNJ) said it will sell its Ortho-Clinical Diagnostics unit to the Carlyle Group for about $4 billion. According to the Wall Street Journal, the deal could close as soon as midyear. Carlyle had made the offer in January, which J&J accepted after consulting with trade unions.
Jury selection begins today in the second major patent infringement case between Apple (AAPL) and Samsung. In the previous patent case between the two, Samsung was ordered to pay $900 million. It is appealing that decision. This time, Apple is suing Samsung for about $2 billion for the alleged violation of five patents. Google (GOOG) is also involved in the suit. Samsung claims it licensed four of those patents from Google through its Android operating system used on Samsung phones, and that Google was developing them before Apple had filed for those patents. Google engineers are expected to take the stand in the case.
And two momentum stocks are fighting to regain their momentum this morning. Facebook (FB) and Netflix (NFLX) had a rough week last week. Facebook was down 10% for the week, as the company announced its latest $2 billion acquisition of virtual reality company, Oculus. Since its high of $72 a share hit on March 10th, the stock is off about 17%. Netflix also suffered last week, down 10%. The stock was one of the best performers in 2013, but it is down more than 20% from its high close of $454 a share hit on March 4th of this year. Competition is increasing as more companies look to get into the streaming video space, with Apple and Amazon among those considering new deals and products to expand streaming video.