Fiat Chrysler Automobiles N.V.
Class Period: Oct 13, 2014 to Jan 11, 2017
Lead Plaintiff Deadline: Mar 20, 2017
Summary of Case:
A securities class action has been filed against Fiat Chrysler Automobiles N.V. ("Chrysler") on behalf of purchasers of Chrysler securities between October 13, 2014 and January 11, 2017. This case has been filed in the USDC - NY Southern.
The Complaint alleges that on Sunday, July 26, 2015, the National Highway Traffic Safety Administration ("the NHTSA") announced its imposition on the Company of a record $105 million fine in connection with the Company's handling of 23 previous recalls affecting more than 11 million vehicles. The NHTSA penalties were tied to violations in an array of areas, including misleading regulators, inadequate repairs, and failure to alert affected car owners in a timely manner. The NHTSA stated, in part:
Fiat Chrysler's pattern of poor performance put millions of its customers, and the driving public, at risk This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture.
On this news, the Company's stock fell $0.74, or roughly 4.9%, per share to close at $14.41 on July 27, 2015. On October 28, 2015, Chrysler announced results for Q3 2015, informing investors that the Company recorded "a €761 million pre-tax charge for estimated future recall campaign costs for vehicles sold in prior periods in NAFTA." The market immediately made the connection between the charge and the Company's regulatory violations for failure to properly conduct recalls. Shortly after Chrysler's announcement, Bloomberg reported: "The manufacturer set aside 761 million euros in the quarter for ‘estimated future recall campaign costs' in North America, where U.S. regulators ordered it in July to buy back vehicles."
On this news, the Company's stock fell $0.69, or roughly 4.7%, per share to close at $14.72 on October 28, 2015. On December 9, 2015, after the close of trading, the market learned that NHTSA was fining Chrysler an additional $70 million for its failure to report incidents of death and injury as well as consumer complaints and warranty claims dating back to 2003. Chrysler admitted that the violations "are significant and date back to the inception of the early warning reporting requirements in 2003."
On January 11, 2017, the U.S. Environmental Protection Agency ("EPA") announced that the Company was illegally using hidden software to allow excess diesel emissions to go undetected. The EPA and California Air Resources Board stated that they believe the Company's undeclared auxiliary emissions control software allowed vehicles to generate excess pollution in violation of the law and each agency issued notices of violation. "This is a clear and serious violation of the Clean Air Act," said Cynthia Giles, assistant administrator for the EPA. (Emphasis added.)
On this news, the Company's stock fell $1.35, or roughly 10.3%, per share to close at $9.95 on January 12, 2017.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.