Fiat Chrysler Antitrust Lawsuit Goes Ahead After Judge Throws Out Racketeering Charge

Steph Willems
by Steph Willems

The lawsuit that sparked federal investigations of Fiat Chrysler Automobiles and changed the way it reports sales is going ahead, minus a racketeering charge.

A federal judge has dismissed allegations that FCA offered payments to dealers in exchange for false sales, but the automaker still faces allegations of antitrust law violation and breach of contract, Bloomberg reports.

Napleton’s Arlington Heights, Illinois FCA dealer claimed the automaker encouraged dealers to file false new vehicle delivery reports in exchange for cash, with the money listed as advertising support. The false sales, added at the end of the month, were allegedly rolled back at the beginning of the next month.

While U.S. District Judge Virginia Kendall couldn’t find enough evidence to back up the racketeering charge, she did find enough to support charges of antitrust law violation and price discrimination. Kendall said FCA’s subsidies and incentives “injured competition.”

FCA claims it is “pleased” with the judge’s decision, and plans to fight the remaining charges.

In the wake of the lawsuit, both the U.S. Department of Justice and Securities and Exchange Commission launched investigations into the automaker. Authorities reportedly visited or raided the homes and offices of several FCA employees across the U.S. Because of this, the automaker changed its sales reporting methodology in July, ending a much-touted 75-month sales streak.

Rising FCA star Reid Bigland, the automaker’s U.S. sales head, recently found himself in the crosshairs of the sales tampering probe. Bigland’s signature was reportedly found on suspect sales documents handed over to the Securities and Exchange Commission.

[Image: Fiat Chrysler Automobiles]

Steph Willems
Steph Willems

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