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GM Loses Appeal In Vehicular Facilitation Racketeering Lawsuit Against FCA

Let go of GM. Just let that go.

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C’mon, GM, just drop it.

The three-judge panel of the US 6th Circuit Court of Appeals writes, “even accepting GM’s theory as true, the chain of causation between FCA’s bribes and GM’s injury is still too attenuated.” Furthermore, Automotive News reports that GM is so opposed to the ruling that it will continue to pursue claims that are not based on racketeering laws.

“We will continue to pursue our case against FCA and the other defendants in Michigan state court to recover the damages caused to GM as a result of FCA’s admitted corruption,” reads GM’s official statement.

There Is Never a Good Time to Wake Up and See Who Your Rivals Are:

The statement from FCA, which is now part of Stellantis, read: “We will continue to defend ourselves vigorously against these frivolous allegations,” while calling GM’s statement a “third-rate spy movie, full of preposterous allegations.”

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The original GM lawsuit claimed that FCA had engaged in a years-long bribery scheme with United Auto Workers officials in order to gain an unfair labor-cost advantage that hurt GM indirectly. At the time, GM claimed that FCA’s former CEO, Sergio Marchionne, wanted to merge the two companies in order to weaken GM. Firm claims Marchionne oversaw a collective bargaining agreement “designed, through the power of pattern bargaining, to cost GM billions.”

In 2020, when the fresh accusations surfaced, FCA and PSA Group were in the home stretch of completing their merger. When FCA and GM announced their impending merger, FCA claimed that GM was actively working to damage its reputation.

Two years ago, GM decided to keep suing; however, US District Judge Paul Borman dismissed the case and denied GM’s request to reopen it, stating that the new evidence presented by GM was “too speculative.”