A Michigan judge has thrown out a lawsuit that General Motors filed against Stellantis’ Fiat Chrysler Automobiles in 2019.
GM sued FCA in late 2019, accusing the automaker of conspiring with the UAW in order to receive preferential treatment during labor negotiations with the union. The automaker said this cost it billions of dollars, as the UAW did not offer GM concessions during the negotiations that it otherwise may have.
Wayne County Circuit Judge David Allen on Friday dismissed the suit, Reuters reports, ruling that GM “failed to adequately demonstrate that FCA caused it any actual, legally recognizable harm through its bribery scheme.”
“We respectfully disagree with the ruling and are considering our legal options,” a GM spokesperson told Reuters.
U.S. District Judge Paul already dismissed GM’s case against FCA with prejudice early last year, saying there was no evidence that FCA conspired to harm GM by conspiring with the UAW. GM then filed another appeal seeking to have the racketeering lawsuit reinstated. GM’s appeal of Borman’s ruling is currently pending.
FCA was forced to pay a $30 million fine after it was found to have made $3.5 million in illegal payments to UAW officials between 2009 and 2016 in exchange for preferential treatment during contract negotiations. A total of 14 people have been convicted as part of the UAW corruption investigation, including three former FCA executives. Judge Borman previously ruled that FCA’s bribery scheme had mainly hurt paying UAW members and not GM.
Also among those convicted in the UAW corruption probe was former General Motors board member Joe Ashton, who pleaded guilty to conspiracy to commit wire fraud and money laundering last year. GM had accused Ashton of being a “paid mole” on its board, which he was appointed to in 2014, saying he received payment from FCA through offshore accounts in exchange for providing it with various information and intel on GM’s operations. FCA denied these allegations, likening the accusations to the plot of a “third-rate spy movie.”