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FCA Settles Dealer Lawsuit Over Vehicle Pricing
Fiat Chrysler Automobiles NV has settled a 3-year-old lawsuit that claimed the company manipulated dealer sales figures to boost its stock price.
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Fiat Chrysler Automobiles NV has settled a 3-year-old lawsuit that claimed the company manipulated dealer sales figures to boost its stock price.
The original lawsuit filed by a group of Illinois dealers accused FCA of racketeering and violating federal antitrust laws, Automotive News reports. The plaintiffs argued that the company pressured rival dealerships to pad their sales figures and rewarded them for doing so by raising their allocation of hot-selling models.
Those charges were dismissed, even though FCA agreed in mid-2016 to restate its sales results going back to 2011. AN says the company asserted that the previous system had been in place for decades and did not materially inflate its figures.
Meanwhile, the plaintiffs continued to claim that FCA discriminated on vehicle wholesale prices and violated dealer franchise laws in four states. Details of the settlement of those charges, which averts a trial later this year, are confidential.
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