A judge threw out GM’s amended complaint against FCA alleging it bribed union leaders and auto executives, like Alphons Iacobelli, right, and UAW VP General Holiefield, left, to gain a competitive advantage.
A federal judge in Detroit tossed out General Motors’ bid to amend its original lawsuit against Fiat Chrysler Automobiles N.V. alleging that FCA had conspired with officials of the United Auto Workers to harm GM.
Judge Paul Borman, who also threw out the original suit, said in a new ruling that GM’s “amended complaint” that FCA’s effort to manipulate UAW officers were the “direct cause” of any harm inflicted on GM as required by the federal RICO statute fell short.
In addition, the affidavits GM used to support its case did not contain sufficient evidence to require a fresh look at the entire case, Borman said.
(GM claims FCA used secret foreign bank accounts for bribe money.)
Former FCA CEO Marchionne, now deceased, and former UAW President Dennis Williams were linked to a bribery scheme in an affidavit by General Motors.
“GM’s newly discovered evidence does not create a reasonable inference that FCA was bribing individuals to infiltrate GM as part of a scheme to directly harm GM, and, therefore, does not change the Court’s conclusion that GM’s alleged injuries were not proximately caused by FCA’s alleged RICO violations. GM’s newly discovered evidence is not of such a nature as would probably produce a different result. It does not support amending or altering the judgment issued in this case,” Borman wrote.
The new ruling by Borman, who last month had dismissed GM’s original lawsuit “with prejudice” and has described the entire case as a “waste of time,” apparently leaves GM with few options except to appeal the judge’s ruling to the U.S. Sixth Circuit Court of Appeals.
Earlier this week, FCA’s lawyers said GM’s claims in the contentious lawsuit in which GM claims FCA had conspired with key officials from the United Auto Workers to undermine GM’s competitive position during the past decade.
(GM pushes for round two in legal battle with Fiat Chrysler.)
GM raised the stakes by filing a series of affidavits that charged its private investigators found evidence that FCA funneled money to UAW officials through bank accounts in Europe, Asia and Central America and spied on GM.
Fiat Chrysler officials continue to call the lawsuit “meritless.”
“GM’s proposed amended complaint is the latest example of the lengths it is prepared to go to, attacking a competitor that is winning in the marketplace with yet more baseless accusations,” FCA said in a statement.
“As we have said from the date this lawsuit was filed, it is meritless and we will continue to vigorously defend ourselves. GM’s attempts to tarnish FCA’s reputation and that of individual FCA officers and employees will not distract us from our mission of providing customers with outstanding and exciting cars, trucks and SUVs or from completing our landmark combination with Groupe PSA,” the statement said.
“GM’s proposed Amended Complaint reads like a script from a third-rate spy movie, full of preposterous allegations that FCA paid not one, but two, ‘mole[s]’ to ‘infiltrate GM’ and ‘funnel inside information to [FCA]’ using money ‘stashed’ in a ‘broad network’ of ‘secret overseas [bank] accounts.’ None of that is true.”
(GM lawsuit against FCA tossed out by judge.)
“That GM has extended its attacks to individual FCA officers and employees, making wild allegations against them without a shred of factual support, is despicable,” FCA lawyers said in a court documents filed to counter GM’s petition asking a federal judge in Detroit to re-instate its original lawsuit filed last November.