Judge Dismisses GM's Racketeering Lawsuit Against Fiat Chrysler -- Update
July 08 2020 - 3:33PM
Dow Jones News
By Mike Colias
A federal judge dismissed a General Motors Co. lawsuit accusing
Fiat Chrysler Automobiles NV of bribing union officials to gain an
advantage on its labor costs, dealing a blow to GM in an unusual
legal standoff between rival automotive giants.
GM in November filed a civil racketeering lawsuit against Fiat
Chrysler, claiming the Italian-American auto maker intentionally
hurt GM by paying off United Auto Workers leaders to win
more-favorable contract terms for union-represented factory
workers.
On Wednesday, U.S. District Judge Paul Borman said GM failed to
show it was the primary victim of any alleged racketeering activity
that Fiat Chrysler officials may have engaged in.
Instead, the primary victims were rank-and-file UAW workers, who
would have received lower pay from any attempt by Fiat Chrysler to
lower labor costs, the judge concluded.
GM said it plans to continue pursuing the case and believes
there is evidence to show that Fiat Chrysler employees engaged in
racketeering that harmed GM. "The district court's opinion is
contrary to well-settled RICO case law and would let wrongdoers off
the hook for the massive harm caused by their criminal conspiracy,"
the company said.
A Fiat Chrysler spokesman didn't have an immediate comment.
--Nora Naughton contributed to this article.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
July 08, 2020 15:18 ET (19:18 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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