A federal judge in Detroit has tossed out General Motors’ lawsuit alleging that Fiat Chrysler paid off union leaders to get better contract terms than GM.
In a ruling Wednesday, U.S. District Judge Paul Borman wrote that GM’s alleged injuries were not caused by FCA violating federal racketeering laws. He wrote that GM has not stated a claim that can be granted, and that the people harmed by the bribery scheme were Fiat Chrysler workers.
GM said it disagreed with the ruling and will pursue legal remedies.
In a 2019 lawsuit, GM alleged that Fiat Chrysler bribed officials of the United Auto Workers union to get lower labor costs, giving FCA an advantage over its Detroit-area rival. GM alleged that FCA CEO Sergio Marchionne wanted to pressure GM into merging by weakening GM with higher costs.
The original full article can be found at apnews.com
(Photo: Automotive News Europe)