A U.S. judge on Wednesday said Fiat Chrysler Automobiles NV (FCHA.MI) must face a lawsuit claiming it defrauded shareholders by overstating its ability to comply with vehicle safety laws.
U.S. District Judge Jesse Furman in Manhattan said the automaker must face claims over statements in late 2014 that it was “substantially” in compliance, even as it was being probed by the National Highway Traffic and Safety Administration for shortcomings tied to two recalls.
Furman dismissed claims accusing Fiat Chrysler of violating accounting principles by failing to set aside enough money to cover recalls it had reason to expect.
