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Fiat Chrysler Securities Fraud Class Action Lawsuit

This securities fraud class action complaint alleges that Chrysler and its chief executives engaged in a scheme to defraud and deceive plaintiffs by making various untrue statements of material facts.

Who Is Affected?

The complaint is brought on behalf of purchasers of Chrysler securities between August 1, 2014 and July 24, 2015, inclusive.  Chrysler was founded in October 2014 by the merger of Fiat Group Automobiles and Chrysler LLC.  Chrysler’s stock trades on the NYSE under the ticker symbol “FCAU.”

Procedural History

The lawsuit was filed on September 11, 2015 and is captioned Pirnik v. Fiat Chrysler Automobiles N.V. et al. It was filed in the New York Southern District Court.  Its civil docket number is 1:15cv07199.  The class period runs from August 1, 2014 through July 24, 2015.  The lead plaintiff deadline is November 10, 2015.

During the class period, defendants failed to disclose that:

  1.   flaws in the company’s manufacturing processes, supply chain, electronic security measures, and/or quality control rendered at least 3.1 million Chrysler cars and trucks unsafe to drive;

In June 2015, Chrysler recalled 2015 Jeep Grand Cherokee and Dodge Durango SUVs advising approximately 65 drivers to immediately stop driving their vehicles.  An additional 7,690 vehicles were subject to recall as well because they were built during the same 8-day period.  The announcement caused Chrysler stock to fall 7%

In July 2015, Chrysler issued another recall affecting approximately 1.4 million Jeep Grand Cherokee and Dodge Durango SUVs.  The announcement caused Chrysler’s stock to fall 2.5%

In September 2015, Chrysler issued another recall notice affecting 7,810 Jeep Renegade SUVs, news of which caused Chrysler’s stock to fall another 2%

  2.   the company’s slow completion rates for recalls, slow or inadequate notifications to consumer, and faulty approaches to addressing safety issues and improper actions by dealers were not in compliance with federal law and regulations;

In July 2015, the National Highway Traffic Safety Administration imposed a $105 million fine on Chrysler in connection with its handling of the previous 23 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 penalty caused Chrysler stock to drop 5% in July 2015.

  3.  as a result of the foregoing, defendants’ statements about Chrysler’s business, operations, and prospects were false and misleading and lacked a reasonable basis.

As a result of defendants’ acts and omissions, the sharp decline in the market value of Chrysler securities caused plaintiffs to suffer significant losses and damages.

Article Type: Lawsuit
Topic: Investments

Most Recent Case Event

Shareholder alleges Fiat Chrysler failed to fully disclose operational problems that led to massive recall

September 11, 2015

Here is the complaint.  It chronicles the various public statements Fiat Chrysler made to investors regarding the recall it was conducting.  The complaint will be amended once the court establishes the leadership structure.   

chrysler_complaint.pdf

Case Event History

Shareholder alleges Fiat Chrysler failed to fully disclose operational problems that led to massive recall

September 11, 2015

Here is the complaint.  It chronicles the various public statements Fiat Chrysler made to investors regarding the recall it was conducting.  The complaint will be amended once the court establishes the leadership structure.   

chrysler_complaint.pdf
Tags: Failure To Disclose Operational Problems, Securities Frauds, Stock Losses, Your Money