Michigan judge turns down General Motors lawsuit against Fiat Chrysler

by SpeedLux
General Motors and Fiat Chrysler Automobiles

A Michigan judge has turned down a lawsuit that General Motors filed against Stellantis’ Fiat Chrysler Automobiles (FCA), alleging it of fraud and unfair competition.

GM sued FCA in 2019, alleging that it bribed United Auto Workers (UAW) union officials over a number of years to corrupt the bargaining process and gain advantages, which in turn cost GM billions of dollars.

Wayne County Circuit Judge David Allen on Friday turned down GM’s state court lawsuit, which also named two former FCA executives who earlier pleaded guilty in a Justice Department bribery probe.

The judge said that GM has failed to show “that FCA caused it any actual, legally recognizable harm through its bribery scheme”.

Allen noted that GM’s allegations against FCA spanned over a decade, dating back to 2009, adding: “Even the most enthralling drama must eventually reach a conclusion. This one is no exception.”

GM’s lawsuit had sought “damages in an amount to be determined at trial,, including but not limited to the billions of dollars in damages it has suffered.

Stellantis spokeswoman Shawn Morgan welcomed the decision saying: “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 lawsuit that made parallel bribery claims against FCA. GM’s appeal of Borman’s ruling is pending.

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