Federal judge throws out GM's racketeering lawsuit against Fiat ChryslerOn Wednesday, Borman dismissed the lawsuit “with prejudice,” meaning GM cannot refile the complaint.
“The direct victims of defendants’ alleged bribery scheme are FCA’s workers,” Borman wrote of FCA. “GM’s high labor costs were not an injury approximately caused by FCA’s bribes, and any competitive injury that GM suffered as a result of FCA’s advantage in labor costs is an indirect injury.”
On Monday, the Sixth U.S. Circuit Court of Appeals denied GM’s petition to remove Borman from the case, but said the two automakers’ chief executives didn’t have to meet to try to settle the case as Borman had ordered. In calling for that, Borman had called the lawsuit “a waste of time and resources.”
As I mentioned in the past, had GM's management created enough demand for the company's products, GM would need to hire new UAW hires(whom have significantly lower pay) which would have lowered GM's labor cost per hour. But Mary & Mark Reuss are the two people whom made choices that left GM with higher labor cost.