DETROIT — U.S. District Judge Paul Borman dismissed General Motors’ wide-ranging racketeering case against Fiat Chrysler Automobiles.
Last month, Borman called the lawsuit — in which GM accuses FCA of bribing UAW leaders to gain an unfair labor-cost advantage — a distraction for the companies and a “waste of time and resources for the years to come.”
The judge ruled on Wednesday that GM’s first causation theory, in which it alleged that FCA engaged in a pay-to-harm scheme, “has some appeal, but it fails on closer look.”
GM cannot argue that it would have gotten a better labor contract if not for FCA’s bribes to the UAW, Borman said.
GM said it strongly disagrees with the court order and will “pursue our legal remedies.”
“There is more than enough evidence from the guilty pleas of former FCA executives to conclude that the company engaged in racketeering, our complaint was timely and showed in detail how their multimillion dollar bribes caused direct harm to GM,” spokesman Jim Cain said in a statement.
“The district court’s opinion is contrary to well-settled RICO case law and would let wrongdoers off the hook for the massive harm caused by their criminal conspiracy.”
There was no immediate comment from FCA.
