Fiat Chrysler Agrees to Pay $110M to settle US Investor Suit

NEW YORK – Fiat Chrysler Automobiles NVOpens has decided to pay $110M to settle a lawsuit which put allegations on the automobile company that it misled the US investors over more than permitted limit of diesel emission. Also, according to a court’s records, the Italian-American automobile automaker has been accused of failing to meet federal safety regulations. In its response, the company completely denied the allegations about the misconduct as mentioned in the lawsuit. Further, it added that the fund for the settlement has been completely covered with the help of the company’s insurance.

It was in 2015 when the company, Fiat Chrysler faced the allegations of misleading the US investors. It was mentioned in the allegations that the company deceived the investors by making the statements about its compliance with vehicle safety regulations. Not only this, but it also under-reported its cost of recalls reserves. It is not only for the first time that the company has settled allegations. Earlier in the year 2015, the National Highway Traffic Safety Administration’s imposed allegations on the company about its failure to properly complete 23 recalls which affected more than 11 million vehicles. To settle these allegations in 2015, it paid a $105 million U.S. penalty. In addition to it, the company also conducted additional recalls and gave its consent to buy back millions of vehicles. Many sources including have been known for delivering vehicle reports as it is done in this case.

Accepting the allegations of the US Justice Department that it used defeat devices which led to high emissions from the diesel-powered vehicles, the company agreed to pay $800 million settlement in order to settle claims by the U.S Justice Department and the state of California.

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