Stellantis Sued in Dutch Court Over Alleged Emissions Cheating

Stellantis, the global automaker formed from the 2021 merger of Fiat Chrysler Automobiles (FCA) and PSA Group, is now facing a class action lawsuit in the Netherlands. The Dutch non-profit foundation Fiat Chrysler Investors Recovery Stichting filed the lawsuit, alleging that one of Stellantis’ predecessor companies, Fiat Chrysler, engaged in emissions test cheating between 2014 and 2017.

The lawsuit claims that Fiat Chrysler installed illegal software in its vehicles to manipulate emissions tests, resulting in significant financial harm to investors who bought or held Fiat Chrysler shares during this period. The legal action, supported by the law firm Scott+Scott, seeks to hold Stellantis accountable for the alleged misconduct, which the foundation asserts was concealed from investors for years.

“This emission scandal was hidden by Fiat Chrysler for years and has impacted thousands of investors. It is overdue that the car manufacturer is being held accountable through this class action,” said Flip Schreurs, Chair of the Fiat Chrysler Investors Recovery Stichting.

The lawsuit was officially submitted to the District Court North-Holland on August 28, with Stellantis being notified the day prior. The court is expected to outline the next steps in the case by December 4, 2024.

In response to the lawsuit, Stellantis has stated that the claims are “without merit” and that the company will “defend itself vigorously.” The case has drawn attention due to its connections to previous legal troubles faced by Fiat Chrysler. In 2022, FCA US LLC, a subsidiary of Stellantis, pleaded guilty to criminal conspiracy in a U.S. Justice Department investigation into diesel emissions fraud.

The lawsuit is backed by external financing from a group associated with the U.S.-based Fortress Investment Group, which could potentially broaden the scope of the claim. Investors who purchased or held Fiat Chrysler shares on the Milan stock exchange from October 2014 to May 2017 are considered potential claimants.

This legal action is part of a broader scrutiny of automakers in the wake of the Volkswagen diesel emissions scandal, which revealed widespread industry practices of emissions cheating. Stellantis, including its brands Fiat Chrysler, PSA, and Opel, has been investigated alongside several other car manufacturers in Europe.

The outcome of this lawsuit could have significant implications for Stellantis as it seeks to navigate the ongoing challenges related to its emissions practices while maintaining investor confidence.

Source: Reuters / Scott+Scott