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DETROIT – On Friday, General Motors Co. petitioned a US appeals court to allow it to continue its civil lawsuit against rival Fiat Chrysler Automobiles NV, rejecting the dismissal of the complaint by a lower court .
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The automaker’s filing with the Sixth Circuit Court of Appeals comes less than a week after US District Court Judge Paul Borman called GM’s lawsuit against Fiat Chrysler a “waste of time and resources “at a time when both automakers should focus on surviving the coronavirus pandemic.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| GM | GENERAL MOTORS COMPANY | 24.46 | -0.77 | -3.05% |
Borman ordered GM CEO Mary Barra and Fiat Chrysler CEO Mike Manley to meet before July 1 to negotiate a resolution.
General Motors CEO Mary Barra was ordered to meet with Fiat Chrysler CEO Mike Manley before July 1.
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FCA had no immediate comment on Friday’s presentation.
In its motion, GM asked the appeals court to dismiss Borman’s order and reassign the case to a different judge from the district court. He called Borman’s order “unprecedented” and “profound abuse” of the judiciary.
GM sued Fiat Chrysler last year, accusing executives at the Italian-American company of bribing union officials at the United Auto Workers to secure labor deals that put GM at a disadvantage. Fiat Chrysler is being investigated by the US Department of Justice as part of a comprehensive investigation into UAW corruption.
GM’s allegations came as Fiat Chrysler and French automaker Peugeot SA were in the early stages of preparing for a merger. Fiat Chrysler has said the lawsuit was intended to disrupt that agreement. GM has said the lawsuit has nothing to do with the merger.
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In a statement, GM rejected Borman’s characterization of the lawsuit as a “distraction” and defended his decision to press the case.
“We filed a lawsuit against FCA for the same reason that the US Department of Justice continues to investigate the company: Former FCA executives admitted that they conspired to use bribes to obtain employment benefits, concessions and advantages. Based on the direct harm to GM, these actions caused, we believe that FCA should be held accountable. “
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