Case Page

 

Case Status:    ONGOING    
On or around 11/30/2016 (Ongoing date of last review)

Filing Date: July 29, 2016

According to the law firm press release, FCA is an international automotive group engaged in designing, engineering, manufacturing, distributing, and selling vehicles, components, and production systems. The Company's vehicles are produced for the mass market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brands and the SRT performance vehicle designation. The Company sells vehicles in the United States through its U.S. subsidiary, FCA US LLC ("FCA US").

The complaint alleges that throughout the Class Period the defendants made false and misleading statements and failed to disclose material adverse facts about the Company's business and operations to investors. Specifically, the defendants misrepresented the Company's growth by purposefully inflating FCA's vehicle sales numbers and falsely touting the Company's streak of U.S. monthly vehicle sales growth (on a year-over-year basis).

As detailed in the complaint, the truth about FCA's business practices began to surface on January 12, 2016, when an FCA-affiliated dealer filed a lawsuit accusing FCA US of paying dealers to improperly inflate vehicle sales numbers by reporting unsold vehicles as sold and then reversing those fictional sales during the following month. After news outlets reported the lawsuit, the price of the Company's common shares declined $0.66 per share, or more than 8%, from a closing price of $8.19 per share on January 12, 2016 to close at $7.53 per share on January 14, 2016.

On July 18, 2016, several news outlets reported that the Department of Justice ("DOJ") and the Securities and Exchange Commission ("SEC") were investigating the Company's sales practices. On that same day, FCA issued a press release confirming that it was cooperating with an SEC investigation into FCA's reporting of vehicle sales to "end customers" in the U.S., and that the DOJ was also investigating. Following this news, the price of the Company's common shares declined $0.19 per share, or nearly 3%, from a closing price of $6.75 per share on July 15, 2016 to close at $6.56 per share on July 19, 2016.

Finally, on July 26, 2016, the Company announced that it had revised the way it reports monthly U.S. vehicle sales – revealing that its much publicized 75-month streak of U.S. monthly vehicle sales growth (on a year-over-year basis) actually ended at 40 months in September 2013.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Auto & Truck Manufacturers
Headquarters: United Kingdom

SECURITIES INFORMATION:

Ticker Symbol: FCAU
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Michigan
DOCKET #: 16-CV-12803
JUDGE: Hon. Linda V. Parker
DATE FILED: 07/29/2016
CLASS PERIOD START: 10/29/2014
CLASS PERIOD END: 07/18/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kessler Topaz Meltzer & Check LLP (Pennsylvania)
    280 King of Prussia Road, Kessler Topaz Meltzer & Check LLP (Pennsylvania), PA 19087
    610.667.7706 610.667.7706 · info@ktmc.com
  2. The Miller Law Firm, P.C.
    950 West University Drive, Suite 300, The Miller Law Firm, P.C., MI 48307
    (248) 841-2200 ·
No Document Title Filing Date