GM Tries Once More on FCA Racketeering Charges
Maybe the third times the charm.
General Motors thinks so after being rebuffed twice since November in its racketeering claims against Fiat Chrysler Automobiles.
Yesterday GM filed a second appeal before the U.S. 6th Circuit Court of Appeals in Cincinnati to revive its claim last November that FCA bribed union officials to win more favorable U.S. labor contracts with the United Auto Workers union.
U.S. District Court Judge Paul Borman suggested in June that the CEOs of the two parties try settling the issue in a face-to-face meeting. GM appealed instead and asked that its complaint be assigned to a new judge.
But the appellate court returned the case to Borman, who promptly dismissed it with prejudice last month—meaning he considers the case closed—and ruled that GM failed to show how it was damaged.
Two weeks ago GM presented new charges in Borman’s court, asserting it had since discovered that FCA also used a web of foreign bank accounts to pay former FCA and UAW officials to spy on its labor strategy. Borman described the new charges as “too speculative” and refused to reinstate the case.
So now GM is back before the same appellate court, hoping the new charges will at last give its lawsuit some traction.
The company insists its case is solid. FCA says the complaint has zero merit. Meanwhile, GM is running out of options.
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