General Motors appeals ruling in FCA lawsuit after judge tells CEOs to make a deal

GM suiting FCA for alleged bribery scheme involving UAW

DETROITGeneral Motors is suing Fiat Chrysler for an alleged bribery scheme involving the United Auto Workers (UAW).

The federal judge hearing the case wants the company’s CEOs to sit down and hash out a deal. But GM CEO Mary Barra is not interested in that.

READ: Fiat Chrysler denies union bribery allegations in GM lawsuit

GM has already filed its appeal to the 6th Circuit Court and is asking for the CEO summit to be halted and the for the case to be reassigned to a different judge.

GM filed a racketeering lawsuit against FCA and its now deceased CEO Sergio Marchionne last November. The lawsuit claims that Marchionne was behind a bribery conspiracy that corrupted the UAW contract process. GM claims the alleged dirty dealings cost it billions and Marchionne was attempting to harm it and take over the company.

READ: What’s next after GM accuses FCA of bribery in lawsuit

This week, federal judge Paul Borman said in part, “What a waste of time and resources now and for the years to come in this mega litigation if these automotive leaders and their large teams of lawyers are required to focus significant time-consuming efforts to pursue this nuclear option lawsuit if it goes forward.”

Borman then ordered Barra and FCA CEO Mike Maney to meet next week and make a deal. Borman told the companies to report their progress by Wednesday.

READ: UAW president steps down as GM sues rival over union bribery

UPDATE: On Saturday, US District Judge Paul Borman issued the attached order in the case between the FCA and FCA.


About the Authors:

Kayla is a Web Producer for ClickOnDetroit. Before she joined the team in 2018 she worked at WILX in Lansing as a digital producer.