Investing
U.S. Supreme Court turns away GM bid to revive racketeering suit against Fiat Chrysler
© Reuters. FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo
By John Kruzel
WASHINGTON (Reuters) -The U.S. Supreme Court on Monday declined to hear a bid by General Motors Co (NYSE:) to revive its racketeering lawsuit against rival automaker Fiat Chrysler Automobiles (FCA), now part of Stellantis NV, over bribery allegations involving the United Auto Workers union.
The justices turned away an appeal by General Motors of a lower court’s dismissal of its lawsuit that accused Fiat Chrysler of bribing employee union officials in a bid to undermine GM and pressure the Detroit-based automaker into a merger with FCA.
GM brought a civil lawsuit in 2019 under the Racketeer Influenced and Corrupt Organizations Act, a law designed to target organized crime, claiming FCA bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. GM sought an estimated $6 billion in damages.
A federal judge in Michigan dismissed the lawsuit in 2020, saying GM’s alleged injuries were not legally caused by FCA’s conduct. The Cincinnati-based 6th U.S. Circuit Court of Appeals last August agreed.
“Even accepting GM’s theory as true, the chain of causation between FCA’s bribes and GM’s injury is still too attenuated,” the 6th Circuit wrote.
A separate federal corruption investigation led to at least 17 criminal convictions, including former FCA employees and two former UAW presidents, after FCA and UAW officials admitted embezzling funds for their personal benefit, using the funds for liquor, cigars, golf outings and expensive hotel stays.
Read the full article here
-
Side Hustles6 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Make Money6 days ago
Here’s the Typical American’s Income at Every Age. How Do You Compare?
-
Investing6 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Investing6 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks
-
Side Hustles4 days ago
How Your Body Language Can Help Win a Disagreement
-
Passive Income4 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles5 days ago
How to Develop Empowered Leaders Within Your Own Team
-
Investing5 days ago
AI Transcription Services Are Spilling Company Secrets: Report