GM’s Fiat Chrysler Bribes Suit Felled By Stiff RICO Standard
GM’s Fiat Chrysler Bribes Suit Felled By Stiff RICO Standard
Law360
August 17, 2020
A Michigan federal judge’s dismissal of General Motors’ lawsuit against rival Fiat Chrysler underscores how difficult it is to prove a civil Racketeer Influenced and Corrupt Organizations Act case between competitors and that scoring a shot at repleading claims isn’t always guaranteed, experts say.
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GM sought to bolster its case with fresh allegations detailing the scope of Fiat Chrysler’s alleged corporate espionage, but it still couldn’t meet the strict proximate cause standard that applies to civil RICO cases, the judge determined.
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“The standard of causation is what it is and you can’t knead it under what’s pleaded,” said Mark M. Lee, a former federal prosecutor who is now a partner in Blank Rome LLP’s white collar defense and investigations practice group. “The procedural part of this is that [GM] had time to amend it before the decision was final. And the substantive part of this has to do with what the litigants are calling newly discovered evidence, and that’s not going to cut it either.”
“The time to put all the cards on the table is usually when you first file, and if for some reason you find out your pleadings are defective, then you can cure [them]. But you don’t get additional bites at the apple, especially in a case as complex as this,” Lee said.
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“GM’s Fiat Chrysler Bribes Suit Felled By Stiff RICO Standard,” by Linda Chiem, was published in Law360 on August 17, 2020.