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FCA to Face Claims Over Safety Compliance

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Oct. 6, 2016—A federal judge told Fiat Chrysler Automobiles (FCA) that it must face part of a lawsuit accusing the automaker of defrauding U.S. shareholders by making false and misleading statements about its ability to comply with vehicle safety laws, according to a report by Automotive News.

The automaker must face claims over a statement made in late 2014 that it was “substantially” in compliance, according to the report.

The judge, U.S. District Judge Jesse Furman, dismissed claims accusing FCA of violating accounting principles by failing to set aside enough money to cover expected recalls. The judge did allow shareholders to pursue a claim over the compliance disclosures against CEO Sergio Marchionne and Scott Kunselman, the former safety chief of the automaker’s U.S. unit, Automotive News reports.

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