Michigan judge tosses GM lawsuit against Fiat Chrysler By Reuters
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© Reuters. FILE PHOTO – The facade of General Motors Headquarters in Detroit, Michigan (U.S.A.), March 16th, 2021, shows the new GM logo. REUTERS/Rebecca CookBy David Shepardson
WASHINGTON, (Reuters) – A lawsuit filed by General Motors Co. (NYSE:), against Stellantis Fiat Chrysler Automobiles in Michigan (FCA), that had accused Stellantis of unfair competition and fraud has been dismissed.
In 2019, GM sued FCA alleging that FCA bribed United Auto Workers (UAW), union officials, over many years to corrupt and gain benefits. The suit cost GM billions.
Wayne County Circuit Judge David Allen on Friday dismissed GM’s state court lawsuit, which also named two former FCA executives who previously pleaded guilty in a Justice Department bribery probe.
Judge said that GM had failed to show that FCA did it legal harm by its bribery scheme.
Allen noted that GM’s allegations against FCA spanned more than a decade, dating back to 2009, adding: “Even the most enthralling drama must eventually reach a conclusion. This case is no exception.
GM sued for damages that were to be settled at trial.
Stellantis spokeswoman Shawn Morgan said on Sunday: “As we have said from the date the original lawsuit was filed, it is meritless. The courts once again agreed and dismissed GM’s complaint.”
A GM spokesman said on Sunday: “We respectfully disagree with the ruling and are considering our legal options.”
In July 2020, U.S. District Judge Paul Borman rejected GM’s federal racketeering lawsuit https://www.reuters.com/article/us-gm-fiat-chrysler-lawsuit-idUSKBN24930S that made parallel bribery claims against FCA. GM has appealed Borman’s ruling.
In August, Stellantis’ North American operating subsidiary known as FCA US LLC was sentenced in federal court https://www.justice.gov/usao-edmi/pr/fca-us-llc-sentenced-connection-conspiracy-make-illegal-payments-uaw-officials after pleading guilty to conspiracy to violate the Labor Management Relations Act.
FCA was convicted of making $3.5 million in illegal payments to UAW officers between 2009 and 2016. FCA was fined $30 million and will be subject to three years’ supervision by an independent monitor.
To date, 14 have been convicted in the probe, including three former FCA executives and two former UAW presidents.
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