FCA Files Motion To DISMISS GM Racketeering Lawsuit Tied To Allegedly Rejected Merger

In a sweeping suit filed in November, GM claims that its smaller rival secured an unfair advantage in labor costs by bribing UAW officials during key contract negotiations covering wages and benefits. The suit alleges that Sergio Marchionne, the late FCA CEO, wanted to hurt GM in an effort to force a merger between the two companies.

Marchionne, the suit says, "formally solicited GM for a merger" in the spring of 2015, an offer that was rejected. From there, the suit alleges that Marchionne orchestrated and negotiated a collective bargaining agreement that was "designed, through the power of pattern bargaining, to cost GM billions..."

...FCA, citing "fatal flaws" and "hyperbolic assertions," laid out six points in a motion Friday that it believes makes the GM lawsuit worthy of dismissal...

MDarringer - 1/25/2020 8:01:16 PM

-2 Boost

Marchionne was an absolute idiot, so I'm with GM on this one. Sometimes, it's good that people die.

Hauerg - 1/28/2020 7:41:23 AM

+1 Boost

Same to you.

CANADIANCOMMENTS - 1/26/2020 2:54:55 PM

+2 Boost

IT will be very, very hard to prove damages in cases like this. Sadly Kobe Bryant died today in a helicopter crash. There seems to be a link between famous people and dying in a private plane/copter crash. Better to take the bus or fly commercial.

MDarringer - 1/26/2020 3:35:24 PM

-3 Boost

Sad, but unrelated.

Actually, all GM has to prove is that the deal cut with FCA and the UAW was used as a template for the GM contract and that will be a cinch.

CANADIANCOMMENTS - 1/26/2020 4:24:06 PM

+4 Boost

From what I have read in the news over the years, the UAW picks one of the big three (usually one doing well) and whatever deal they get from them, they use that as the template for the rest. I don't see how a repeat of this behaviour/pattern would prove guilt. It seems like a standard practice.

MDarringer - 1/26/2020 5:31:31 PM

-4 Boost

(1) You've proven my point.
(2) You're implying that an unfair labor practice is fair if it has happened more than once.
(3) It is immaterial--legally--that no one has sued before.
(4) FCA and the UAW have already been caught for collusion.

GM is in the driver's seat. PSA will have to pay to make this go away.

CANADIANCOMMENTS - 1/26/2020 8:44:30 PM

+2 Boost

How is it an unfair practice?

They cut a deal, they now have a goal in their negotiations, they try to achieve that goal with the next round with another manufacturer. And so on until they have deals with all 3.

As you stated it has gone on for years and nobody has sued. Likely because they can't. They all have enormous legal departments that handle 1,000's of cases per year. Likely with budgets approaching $500m on global basis. If there is a case now, there was one back in the 70's. As nobody has sued, there can't be any "there" there and no basis for a legal case.

MDarringer - 1/26/2020 9:22:04 PM

-4 Boost

I wouldn't expect you to see any union capable of an unfair labor practice given your fascist-socialist Alt-Left bent.

co·er·cion
/ko'?rZH?n,ko'?rSH?n/
noun
the practice of persuading someone to do something by using force or threats.

MDarringer - 1/26/2020 9:23:35 PM

-2 Boost

Truthy "Well if it's coercion we're talking about, Donny Dotard tRump orange baboon pussy grabber knows all about that."

Just beating him to the punch...

CANADIANCOMMENTS - 1/26/2020 9:35:37 PM

+3 Boost

@MD my "bent" is knowing how large corporations work and how senior executives think. If they had a case, it would have been brought to a court long ago. Nobody likes to give away millions. They take on cases worth far less. And yes you beat Truthy to the punch...

MDarringer - 1/26/2020 10:12:10 PM

-2 Boost

Clearly you don't.

This is NOT a factual statement: "If they had a case, it would have been brought to a court long ago."

It's an opinion and opinion is not fact.

You also don't know the law. It makes NO DIFFERENCE how many times the crime was ignored in previous practice to the outcome of it being tried now.

You know nothing about business and if you are working in that capacity, I am thankful NOT to be a part of that culture of low expectations.

CANADIANCOMMENTS - 1/26/2020 10:33:35 PM

+3 Boost

Have it your way Burger King. Follow the "case" that GM has brought forward and see how it unfolds... But know that private parties (unlike the Government) that are bringing forward a RICO legal case have to be able to PROVE damages. You can wish GM all the good luck in the world with that and hate FCA all you want. But it won't help here. #lawyered.

MDarringer - 1/27/2020 8:06:56 AM

-2 Boost

GM can prove damages.

MDarringer - 1/26/2020 10:27:02 PM

-2 Boost

What's radically different about this moment is that the UAW is disgraced and in a shambles due to corruption, thus a long-bullied manufacturer like GM can take a punch at FCA to hit the union.

Hauerg - 1/28/2020 7:44:47 AM

+1 Boost

Can anybody tell me why this MD idiot keeps using word he does not understand?

MDarringer - 1/28/2020 8:10:22 AM

+1 Boost

Be precise, moron.