id: 341, Created by Yaroslav Semashko, Scout
Fiat Chrysler (FCAU) $40M Fair Fund
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- Company agreed to settle with investors to avoid further litigation
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Claim deadline for this case already passed by, but we can still try and file for compensation for you
13 Oct 2014Class period Start
26 Jul 2016Class period End
09 Jan 2023Claim deadline
Fiat Chrysler (FCAU) settled $40 million with investors through SEC Fair Fund
On September 27, 2019, the Commission issued an Order Instituting Cease-and-Desist Proceedings according to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (the “Order”) against FCA US LLC (“FCA US”) and Fiat Chrysler Automobiles N.V. (collectively, the “Respondents”).
In the Order, the Commission found that from at least August 2012 to July 2016, FCA US, an automotive company, fraudulently misled investors about the number of new vehicles that it and its dealers sold each month to customers.
The Commission similarly found that beginning in September 2013, FCA US or its predecessor falsely touted that it continued to increase new vehicle sales every month on a year-over-year basis by reporting what it called a “streak” of uninterrupted sales growth.
To maintain the purported growth streak, FCA US inflated monthly vehicle sales to customers by paying dealers to report fake sales, as well as manipulating other sales data to make vehicle sales appear better than they were. The Commission ordered the Respondents to pay, jointly and severally, a civil money penalty of $40,000,000 to the Commission. The Commission also created the Fair Fund, under Section 308(a) of the Sarbanes-Oxley Act of 2002, so the civil penalty paid can be distributed to harmed investors. The Fair Fund includes the $40,000,000 paid by the Respondents.
Failure to Disclose,
27 September 2019
JND Legal Administration
Trades matching type
+$40,000,000Total Settlement Amount