Automotive News: Fiat Chrysler must face U.S. lawsuit over safety compliance, PA, NY Want Volkswagen Diesel Suits Back In State Court

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Fiat Chrysler must face U.S. lawsuit over safety compliance

A U.S. judge on Wednesday said Fiat Chrysler Automobiles NV must face a lawsuit claiming it defrauded shareholders by overstating its ability to comply with vehicle safety laws.

U.S. District Judge Jesse Furman in Manhattan said the automaker must face claims over statements in late 2014 that it was "substantially" in compliance, even as it was being probed by the National Highway Traffic and Safety Administration for shortcomings tied to two recalls.

Furman dismissed claims accusing Fiat Chrysler of violating accounting principles by failing to set aside enough money to cover recalls it had reason to expect. read more »

PA, NY Want Volkswagen Diesel Suits Back In State Court

New York and Pennsylvania on Wednesday asked to send their lawsuits in the multidistrict litigation over Volkswagen AG’s diesel emissions scandal back to their own state courts, saying the multidistrict litigation created to handle the suits lacks jurisdiction over their cases.

The remand motions come more than a month after Volkswagen successfully transferred the cases to the MDL in California federal court before U.S. District Judge Charles R. Breyer on the grounds that they posed questions of federal law, including violations of the Clean Air Act. At the time, the states agreed not to object to the transfers in order to allow Judge Breyer to hear all remand motions, with VW saying it would help to eliminate or reduce the risk of “inconsistent conclusions” among the various state cases. read more »