Italian-American automaker Fiat Chrysler Automobiles NV has agreed to pay US$110 million to settle a lawsuit alleging it misled US investors over excess diesel emissions and failed to comply with federal safety regulations.
The company said in a statement on Monday, April 8, it “continues to vigorously deny the allegations of wrongdoing made in this lawsuit” and announced the settlement is “completely covered by the company’s insurance.”
Investors sued in 2015, charging that the company misled them by asserting that Fiat Chrysler was in compliance with vehicle safety regulations and that the company under-reported its reserves for the cost of recalls.
In 2015, Fiat Chrysler settled allegations with the National Highway Traffic Safety Administration that it failed to properly complete 23 recalls affecting more than 11 million vehicles. It paid a US$105 million US penalty, conducted additional recalls, and agreed to buy back hundreds of thousands of vehicles.
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