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A federal judge in Detroit said Friday that he will not recall his July dismissal of General Motors’ racketeering case against Fiat Chrysler Automobiles in July.
U.S. District Judge Paul Borman wrote in an opinion that new evidence presented by GM regarding bribery and foreign bank accounts is “too speculative to re-guarantee” the case.
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Borman also ruled that the earlier dismissal of the case was not done in legal error.
GM claimed that FCA used foreign bank accounts to pay bribes to former United Auto Workers presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. It also claims that money was paid to GM employees including Al Iacobelli, a former FCA labor negotiator who was hired and later released by GM.
GM said the payments were made so that officials would cover GM with more than $ 1 billion in additional labor costs.
“Even if the confirmations state that these foreign bank accounts exist, that fact does not apply until the inference by GM, that FCA more than likely used the bank accounts to bribe UAW officials,” Borman’s order stated.
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GM said Friday it would appeal Borman’s ruling to the Sixth Circuit Court of Appeals.
“Today’s decision is disappointing because the corruption in this case is proven given the many guilty plea cases from the ongoing federal investigation,” GM said in a statement. “GM’s package will continue – we will not accept corruption.”
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| GM | GENERAL MOTOR COMPANY | 27.86 | +0.31 | + 1.13% |
| FCAU | FIAT CHRYSLER AUTOMOBILES NV | 11.43 | -0.10 | -0.87% |
FCA attorneys wrote in court documents that allegations that it bribed union officials were “unpostable” and read like a script from a “third-class spy movie.”
Gettelfinger denied the allegations in a statement, saying he had no foreign accounts. Williams’ California home was raided by federal agents, but he is not charged. Iacobelli, who is awaiting sanction in the probes for federal corruption, also denied the claims.
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“Judge Borman’s ruling this morning reaffirms what we’ve been saying from the beginning – that GM’s lawsuit is meritorious and its attempt to file a modified complaint under the court’s decision to ask for consideration was nothing more than a baseless attempt to smear a competitor winning in the market, “FCA said Friday in a statement.
