Judge dismisses GM's bribery lawsuit against Fiat Chrysler

Posted at 3:22 PM, Jul 08, 2020
and last updated 2020-07-08 16:21:36-04

DETROIT (AP) — A federal judge in Detroit has dismissed General Motors’ lawsuit alleging that rival 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 racketeering laws. He wrote that GM has not stated a claim that can be granted.

GM said it disagreed with the ruling and will pursue legal remedies.

The ruling came after a federal appeals court on Monday overturned Borman’s order that the CEOs of both companies meet in person to talk about settling the case. But the court denied GM’s request to give the case to another judge.

FCA released this statement: "We have said from the very outset that this was a meritless lawsuit. The dismissal of GM’s complaint with prejudice earlier today vindicates our position.”