GM asked a federal judge to reinstate its lawsuit against rival Fiat Chrysler.
General Motors Co. has asked the federal judge that dismissed its lawsuit against Fiat Chrysler Automobiles N.V. to reinstate the lawsuit, claiming it has new evidence.
The automaker asked Judge Paul Borman to reconsider his earlier judgement on the alleged racketeering charges GM levied at Fiat Chrysler. Borman initially characterized the case as a “waste of time,” but allowed it to proceed.
“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. GM asked for $1 billion in damages in the initial lawsuit.
(GM lawsuit against FCA tossed out by judge.)
Fiat Chrysler has maintained that GM’s lawsuit is without merit.
The company said it’s come across “reliable information concerning the existence of foreign bank accounts” used in the alleged scheme, GM attorneys revealed in affidavits in the filing, according to the Detroit News.
Borman tossed the suit last month after an appeals court kicked it back to him, saying GM supposed “injuries” weren’t a result of the FCA’s alleged violations.
“GM’s failure to plead sufficient facts showing that it was proximately harmed ‘by reason of’ Defendants’ alleged § 1962 violations means that it did not state a cognizable civil RICO claim,” Borman said in his 30-page ruling that reviewed GM original allegations and legal arguments.
(Appeals court nixes GM-FCA CEO pow-wow.)
GM filed a lawsuit last year claiming rival Fiat Chrysler had corrupted officials of the United Auto Workers union in a bid to gain a competitive advantage, has been dismissed by a federal judge in Detroit.
After federal investigators had spent several months uncovering a corrupt bargain between FCA executives and UAW officers, GM decided it had been aggrieved and filed suit.
Alphons Iacobelli, right, was previously sentenced to 5.5 years in prison for his role in the FCA-UAW training fund scandal, including paying off now-deceased UAW VP General Holiefield’s mortgage.
Specifically, GM alleged that Fiat Chrysler “corrupted” collective bargaining agreements between GM and UAW in 2009, 2011 and 2015 by paying millions in dollars in bribes, and that the alleged scheme was authorized at the highest levels of Fiat Chrysler, including the company’s late Chief Executive Officer Sergio Marchionne.
The lawsuits claim that throughout the defendants made false and/or misleading statements and/or failed to disclose that FCA employed a bribery scheme to obtain favorable terms in its collective bargaining agreement with the UAW.
(FCA hit with series of class-action lawsuits over bribery charges.)
Ultimately, the investigation has led to the conviction of three FCA executives and more than a dozen UAW officers and officials as well as the widow of the former UAW officer in charge of union’s FCA section when the bribery and other corrupt acts that served as the basis of the GM lawsuit took place.
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