A federal judge in Detroit said Friday he would not reconsider his July dismissal of General Motors’ racketeering lawsuit against Fiat Chrysler Automobiles.
US District Judge Paul Borman wrote in an opinion that new evidence presented by GM regarding bribes and foreign bank accounts “is too speculative to justify reopening” the case.
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Borman also ruled that the earlier dismissal of the case had not been made in error of law.
GM alleged 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. He also alleges that money was paid to GM employees, including Al Iacobelli, a former FCA labor negotiator who was hired and then released by GM.
GM said the payments were made in order for officials to impose more than $ 1 billion in additional labor costs on it.
“Even though the affidavits establish that these foreign bank accounts exist, this fact does not amount to the inference advanced by GM, that FCA more than likely used the bank accounts to bribe UAW officials,” Borman said.
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GM said on Friday it would appeal Borman’s decision to the Sixth Circuit Court of Appeals.
“Today’s decision is disappointing, as the corruption in this case is proven given the numerous guilty pleas in the ongoing federal investigation,” GM said in a statement. “GM’s lawsuit will continue – we will not accept corruption.”
|GM||GENERAL MOTORS COMPANY||27,86||+0,31||+ 1,13%|
|FCAU||FIAT CHRYSLER AUTOMOBILES NV||11,43||-0,10||-0,87%|
FCA lawyers have written in court documents that allegations of corruption by union officials are “absurd” and read like a script for a “third-rate spy film”.
Gettelfinger denied the allegations in a statement and said he had no overseas accounts. Williams’ California home was raided by federal agents but he was not charged. Iacobelli, who is awaiting conviction in the federal corruption inquiry, also denied the allegations.
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“Judge Borman’s ruling this morning once again confirms what we’ve said all along – that GM’s lawsuit is baseless and that his attempt to bring an amended complaint under the guise of asking the court to change its mind. was nothing more than a baseless attempt at libel. a competitor who is winning in the market, ”FCA said in a statement Friday.