STLA Stellantis NV

By Mike Colias 

A federal judge dismissed a General Motors Co. lawsuit accusing Fiat Chrysler Automobiles NV of bribing union officials to gain an advantage on its labor costs, dealing a blow to GM in an unusual legal standoff between rival automotive giants.

GM in November filed a civil racketeering lawsuit against Fiat Chrysler, claiming the Italian-American auto maker intentionally hurt GM by paying off United Auto Workers leaders to win more-favorable contract terms for union-represented factory workers.

On Wednesday, U.S. District Judge Paul Borman said GM failed to show it was the primary victim of any alleged racketeering activity that Fiat Chrysler officials may have engaged in.

Instead, the primary victims were rank-and-file UAW workers, who would have received lower pay from any attempt by Fiat Chrysler to lower labor costs, the judge concluded.

GM said it plans to continue pursuing the case and believes there is evidence to show that Fiat Chrysler employees engaged in racketeering that harmed GM. "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," the company said.

A Fiat Chrysler spokesman didn't have an immediate comment.

--Nora Naughton contributed to this article.

Write to Mike Colias at Mike.Colias@wsj.com

(END) Dow Jones Newswires

July 08, 2020 15:18 ET (19:18 GMT)

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