Fiat Chrysler to pay $110m to settle US investor lawsuit
Carmaker allegedly misled shareholders over excess diesel emissions and failed to comply with federal safety regulations
New York — Italian-American carmaker Fiat Chrysler Automobiles has agreed to pay $110m to settle a lawsuit alleging it misled US investors over excess diesel emissions and failed to comply with federal safety regulations, court records show. The company said in a statement on Monday it “continues to vigorously deny the allegations of wrongdoing made in this lawsuit” and said the settlement is “completely covered by the company’s insurance”. Investors sued in 2015, charging that the company misled them by asserting that Fiat Chrysler was in compliance with vehicle safety regulations and that the company under-reported its reserves for the cost of recalls. In 2015, Fiat Chrysler settled allegations with the National Highway Traffic Safety Administration that it failed to properly complete 23 recalls affecting more than 11-million vehicles. It paid a $105m US penalty, conducted additional recalls and agreed to buy back hundreds of thousands of vehicles. The securities suit also raise...
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