Reuters File Photo: The new GM logo appears in front of General Motors headquarters in Detroit, Michigan, USA, March 16, 2021. Reuters / Rebecca Cook
By David Shepardson
WASHINGTON (Reuters) – A Michigan judge has filed a lawsuit against General Motors Co (NYSE 🙂 Stalantis’ Fiat Chrysler Automobiles (FCA), accusing its rival of cheating and unfair competition.
GM filed a lawsuit against the FCA in 2019, alleging that it had bribed United Auto Workers (UAW) union officials for years to corrupt the bargaining process and take advantage of the billions of dollars GM had spent.
Wayne County Circuit Judge David Allen on Friday dismissed the GM’s state court case, which also includes the names of two former FCA executives who had previously pleaded guilty to the Judiciary’s bribery investigation.
The judge said GM “failed to adequately show that the FCA has done real, legally recognized harm through its bribery scheme.”
Allen noted that GM’s allegations against the FCA spanned more than a decade, from 2009 to 2009, adding: “Even the most interesting drama has to come to a conclusion in the end. This is no exception.”
GM’s lawsuit “claims a certain amount of damages during the trial, which is not limited to the billions of dollars GM lost.”
Stellantis spokesman Shawn Morgan said Sunday: “As we have said since the original lawsuit was filed, it is unqualified. The court has again agreed and dismissed GM’s allegations.”
A GM spokesman said on Sunday: “We respectfully disagree with this ruling and are considering our legal options.”
In July 2020, U.S. District Judge Paul Burman dismissed GM’s federal case, https://www.reuters.com/article/us-gm-fiat-chrysler-lawsuit-idUSKBN24930S, which claimed parallel bribes against the FCA. GM’s appeal against Borman’s verdict is pending.
In August, a North American operating subsidiary known as Fella US LLC was convicted in federal court https://www.justice.gov/usao-edmi/pr/fca-us-llc-sentenced-connection-conspiracy-make-illegal labor-management After being convicted of conspiracy to violate relationship law
The FCA was convicted of million 1.5 million in illegal payments to UAW officers between 2009 and 2016.
To date, the investigation has convicted 14 people, including three former FCA executives and two former UAW presidents.
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