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DETROIT – General Motors’ accusations that Fiat Chrysler Automobiles corrupted union leaders are “absurd” and read as a “third-rate spy movie” situation, FCA lawyers wrote in court documents filed Monday.
GM, in a move last week, alleged that Fiat Chrysler had used foreign bank accounts to bribe union officials to take over the higher costs of hard work.
But in response, the Italian-American counterattacked and called GM’s claims “defamatory and baseless.”
GM claimed in its application that the FCA had spent millions on bribes by hiding the cash in foreign accounts. The claim that there is new evidence came here when GM asked for a federal ruling to reconsider its july rejection of a federal organized crime lawsuit against Fiat Chrysler.
To revive the lawsuit, GM alleged that bribes were paid to two former Presidents of United Auto Workers, as well as a former union vice president and at least one former GM employee.
In its reply, Fiat Chrysler said that the opinion of approving the trial deserves to reject GM’s request. GM, the FCA said, will need to know that the possibility of obtaining approval of a judgment to cancel the dismissal is minimal, if any. “So this move is a way to impose more defamatory and baseless rates against a competitor who wins in the market.”
FCA has denied GM’s accusations that FCA paid two “topos” to infiltrate GM and send information. The company also denied that foreign bank accounts were involved. “That GM has prolonged its attacks on FCA officials and workers by making crazy accusations that oppose them without any factual evidence is despicable,” FCA lawyers wrote.
GM’s accusations relate to the alleged lifestyles of foreign bank accounts, which are legal, Fiat Chrysler wrote. “There is no singles claim well based on GM’s amended complaint that those foreign bank accounts were used to pay bribes or facilitate any other illegal conduct,” the FCA reaction said.
GM alleges that bribes were paid to former United Auto Workers presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. He also alleges that cash was paid to GM employees, adding Al Iacobelli, a former FCA labor negotiator who hired and then released through GM.
GM alleges that bills were made for public servants to impose more than $1 billion on additional labor costs.
Gettelfinger, whose call had not been discussed in the past in a widespread federal investigation into UAW corruption, vehemently denied the allegations and said he had no offshore accounts. Williams’ California home was searched by federal agents, but was not charged. Iacobelli, who is awaiting sentencing in the investigation, also denied the allegations.
In July, federal district judge Paul Borman in Detroit downplayed GM’s lawsuit on the grounds that Fiat Chrysler paid union executives on contractual terms that GM.
He wrote that GM’s alleged injuries were not caused by the FCA’s violation of federal organized crime law and that those harmed by the bribery scheme were Workers of Fiat Chrysler.
GM’s move argued that invoices were accountable in sales options such as Switzerland, Luxembourg, Italy, Singapore and the Cayman Islands. The accounts were set up to be detected in the investigation of federal criminals, according to the movement. The accounts were recently discovered through personal investigators acting on GM’s behalf, according to court records.
Tom Krisher, The Associated Press