Fiat Chrysler Automobiles N.V. Class Action Lawsuit
- Company Name
- Fiat Chrysler Automobiles N.V.
- Stock Symbol
- Class Period
- February 26, 2016 to November 20, 2019
- Eastern District of New York
On December 2, 2019, the Fiat Chrysler Automobiles N.V. class action lawsuit was filed charging Fiat and certain of its officers with violations of the Securities Exchange Act of 1934. The Fiat class action lawsuit was commenced in the Eastern District of New York on behalf of purchasers of Fiat publicly traded securities between February 26, 2016 and November 20, 2019 (the “Class Period”) and is captioned Kong v. Fiat Chrysler Automobiles N.V., et al., No. 19-cv-06770.
Fiat, together with its subsidiaries, designs, engineers, manufactures, distributes and sells vehicles, components and production systems.
The Fiat class action lawsuit alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Fiat’s business and operations, including that Fiat had employed a bribery scheme to obtain favorable terms in its collective bargaining agreement with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”) and that high-ranking Fiat officials were aware of and authorized the scheme. As a result of this information being withheld from the market, Fiat securities traded at artificially inflated prices during the Class Period, with the price of Fiat’s shares reaching a high of more than $24 per share.
Then on November 20, 2019, General Motors filed a racketeering lawsuit against Fiat in the Eastern District of Michigan for damages caused by the bribery scheme perpetuated by Fiat and the UAW. According to the lawsuit, the illegal activity was authorized by high-level officers of Fiat and helped Fiat win union acceptance of cost concessions in 2011 and 2015. The lawsuit also alleged that Fiat executives bribed UAW leaders to pressure General Motors into a merger with Fiat. On this news, Fiat shares fell nearly 4% to close at $15 per share on November 20, 2019.
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