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GM asks judge to reinstate racketeering case against rival Fiat Chrysler

Published 08/03/2020, 02:20 PM
Updated 08/03/2020, 03:05 PM
© Reuters. FILE PHOTO: A Fiat Chrysler Automobiles sign is seen at the U.S. headquarters in Auburn Hills, Michigan,
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By Nick Carey and Sanjana Shivdas

(Reuters) - General Motors Co (NYSE:GM) on Monday asked a U.S. federal judge to reinstate a racketeering lawsuit against Fiat Chrysler Automobiles NV (FCA) (MI:FCHA), saying it has new information on foreign accounts used in an alleged bribery scheme involving its smaller rival and union leaders.

In the filing, with U.S. District Judge Paul Borman, GM says the scheme, which it alleges occurred between FCA executives and former United Auto Workers (UAW) leaders, "is much broader and deeper than previously suspected or revealed as it involved FCA Group apparently using various accounts in foreign countries ... to control corrupt individuals by compensating and corrupting those centrally involved in the scheme to harm GM."

Last month, Borman threw out the racketeering lawsuit, saying the No. 1 U.S. automaker's alleged injuries were not caused by FCA's alleged violations.

GM alleged that its rival bribed UAW officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. GM was seeking "substantial damages" that one analyst said could have totaled at least $6 billion. FCA called the case meritless and asked Borman to dismiss it.

"These new facts warrant amending the court's prior judgment, so we are respectfully asking the court to reinstate the case," GM said in a statement.

FCA did not immediately respond to a request for comment.

© Reuters. The GM logo is pictured at the General Motors Assembly Plant in Ramos Arizpe

In affidavits accompanying GM's filing, attorneys for the automaker said that "reliable information concerning the existence of foreign bank accounts" used in the alleged scheme had only come to light within the last 10 days.

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