General Motors Files RICO Lawsuit Against Fiat Chrysler Automobiles
Wed, November 20, 2019
Admissions Revealed in Multi-Year Justice Department Investigation Form Basis of Complaint
DETROIT — General Motors Co. (NYSE: GM) today announced the filing of a federal racketeering lawsuit against FCA (FCA US LLC and Fiat Chrysler Automobiles NV) and former FCA executives who have pled guilty in an ongoing federal corruption probe. The lawsuit exposes a multi-year pattern of corruption that FCA used to undermine the integrity of the collective bargaining process and cause GM substantial damages.
At the core of this lawsuit are clear admissions of wrongdoing made by former FCA executives revealed through the continuing criminal investigation by the U.S. Attorney’s Office in the Eastern District of Michigan.
“This lawsuit is intended to hold FCA accountable for the harm its actions have caused our company and to ensure a level playing field going forward,” said Craig Glidden, GM Executive Vice President and General Counsel.
FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time.
FCA corrupted the implementation of the 2009 collective bargaining agreement. It also corrupted the negotiation, implementation, and administration of the 2011 and 2015 agreements.
FCA’s manipulation of the collective bargaining process resulted in unfair labor costs and operational advantages, causing harm to GM.
With this lawsuit, GM is seeking to reinforce that bargaining must be free from fraud and corruption. All damages recovered will be invested in the U.S. to benefit GM’s employees and grow jobs.
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