According to Automotive News, U.S. District Judge Paul Borman has reduced the amount of claims the court will hear in the racketeering suit from five to just three. The claims that have been pushed aside, which relate to unfair competition and civil conspiracy, are state law claims and do not relate directly to the main complaints in the racketeering case, which was filed under the Racketeer Influenced and Corrupt Organizations Act.
Borman said that hearing the two state law claims in addition to the racketeering claims would “create insurmountable, confusing and prejudicial spillover-evidence issues and also create jury confusion that instructions could not cure.”
GM was quick to point out that this development does not mean its claims are without merit.
“These claims were not dismissed,” GM spokesman Jim Cain told AN. “In its ruling, the Court states that the majority of GM’s allegations and claims against FCA and the other Defendants are made under the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Court exercised jurisdiction over these RICO claims.”
The automaker is suing FCA over claims that it bribed UAW officials in order to get favorable treatment during contract negotiations with the union. GM also claims that former FCA CEO Sergio Marchionne, who passed away in 2018, did this with the specific intent of weakening GM financially and forcing it to enter a merger with the Italian-American automaker. The FBI is currently investigating the UAW over widespread corruption and three former FCA execs have already pleaded guilty to charges stemming from the investigation.
FCA remains adamant that GM’s case is baseless and said it will “continue to defend itself vigorously and pursue all available remedies,” in response to the lawsuit.