Fiat Chrysler Automobiles (FCA)

Fiat Chrysler to pay $110 million to settle American investor suit

Fiat Chrysler Automobiles NV has accepted to pay $110 million to settle a lawsuit accusing it misled U.S. investors over excess diesel emissions and failed to adhere with federal safety regulations, court records reveal.

The company stated on Monday it “continues to vigorously deny the allegations of wrongdoing made in this lawsuit” and stated the settlement is entirely “covered by the company’s insurance.”

Investors sued in 2015, charging that the company deceived them by stating that Fiat Chrysler was adhering vehicle safety regulations and that the company under-reported its reserves for the expenses of recalls.

In 2015, Fiat Chrysler settled accusations with the National Highway Traffic Safety Administration (NHTSA) that it failed to properly complete 23 recalls affecting over 11 million vehicles. It paid a $105 million U.S. penalty, conducted extra recalls and agreed to buy back hundreds of thousands of automobiles.

The securities suit also raised claims Fiat Chrysler deceive investors over the Justice Department’s allegations it utilized defeat devices to permit diesel-powered vehicles to emit excess emissions.

In January, Fiat Chrysler accepted $800 million settlement to resolve allegations by the U.S. Justice Department and the state of California that it used illegal software to produce misleading results on diesel-emissions tests.

The lawsuit concerns investors that purchased Fiat Chrysler stock on a U.S. exchange between Oct. 13, 2014 and May 23, 2017. Lawyers for the investors estimated in a court filing that the settlement is equal to 13.8 percent of maximum damages, referring it as “an objectively excellent result when compared to historical statistics in class action settlements.”

The settlement must be authorized by a federal judge in New York.

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