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U.S. Supreme Court Denies Revival Of GM Racketeering Suit Against FCA

An attempt by GM to reinstate its racketeering lawsuit against competing automaker Fiat Chrysler Automobiles, or FCA, was rebuffed by the U.S. Supreme Court on Monday, April 17th, 2023.

According to Reutersreporting on the legal situation, the 6th U.S. Circuit Court of Appeals supported a Michigan judge who dismissed GM’s suit against Fiat Chrysler in 2020. The U.S. Supreme Court has now upheld the dismissal, denying an appeal launched by GM against the decision.

A GM worker holding a UAW sign during a strike.

GM sued FCA, a subsidiary of Stellantis, in 2019 over alleged bribery of United Auto Workers (UAW) union officials by Fiat Chrysler. GM claims bribes from Fiat Chrysler prompted the UAW to favor FCA in negotiations. The General wants approximately $6 billion in damages from FCA, basing its lawsuit on the Racketeer Influenced and Corrupt Organizations Act.

In an earlier statement to the U.S. Supreme Court, GM detailed the alleged collusion between Fiat Chrysler and the UAW, saying it was “clear that FCA’s corruption had not only benefitted FCA but directly harmed GM, both by ensuring that GM would consistently be denied concessions the UAW gave to FCA, and by corrupting the pattern-bargaining process to force GM to shoulder more than $1 billion in labor costs above what it would have expended absent FCA’s racketeering.”

The Michigan headquarters of GM competitor FCA.

Weighing in on the case in 2020, the 6th U.S. Circuit Court denied the validity of GM’s lawsuit and damage claims, noting “even accepting GM’s theory as true, the chain of causation between FCA’s bribes and GM’s injury is still too attenuated.”

Following the U.S. Supreme Court refusal of GM’s attempted reinstatement of the case on Monday, Stellantis issued a statement in which it said the “decision upholding the district court’s dismissal of GM’s lawsuit is another reaffirmation that its claims are meritless.” Stellantis had earlier described GM’s allegations as resembling a “third-rate spy movie.”

The Renaissance Center HQ building of GM.

While GM failed to secure the desired damages, FCA paid a $30 million fine to the government and was sentenced to probation after it pleaded guilty to paying UAW officials in excess of $3.5 million. Additionally, 17 criminal convictions were handed down to former employees of Fiat Chrysler in relation to a federal corruption investigation. Two former United Auto Workers presidents were also convicted.

GM has not publicly commented on the U.S. Supreme Court’s denial of its motion to revive the racketeering suit against FCA.

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Comments

  1. Maynard

    Interesting…is attenuated causation similar to tortured logic? Anyhow, didn’t know there was a RICO charge against the car company formerly known as MOPAR.

    Reply
  2. Mr. Mike

    Just let it go GM. Right or wrong, this just looks petty and desperate. Somehow you allowed them to financially screw you and make you look like the idiots. Live with it.

    Reply
    1. Realist

      UAW is laughing at GM…

      SMH

      Reply
  3. Samuel Gompers

    Perhaps GM is trying to get their money back plus interest from Fiat. GM paid Fiat 2 billion dollars in 2005 to break an agreement to take over the auto company. Fiat was losing money left and right. Better that GM did not become their owners, but they did lose some serious lira, I mean euros.

    Reply
  4. Realist

    The UAW treats GM like shi* and this case now proves they are a criminal organization.
    2 UAW Presidents found guilty…. How many do they freaking have?

    Reply

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