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Shares of
Fiat Chrysler Automobiles NVFCAU plunged more than 8 percent early Thursday following a
report that 2 dealerships in Chicago filed a civil racketeering suit against the company.
According to Automotive News, the 2 dealerships are part of a Chicago auto group and alleged Fiat Chrysler offered its dealers "large amounts of money" to report unsold vehicles as being sold.
The publication noted that dealers were allegedly paid to report false sales on the last day of the month and then "back out or unwind" the sales the very next day. The suit also alleges that Fiat Chrysler's management were aware of the practice and even rewarded managers.
Finally, a spokesman for Fiat Chrysler, Mike Palese, told Automotive News that the company ""has not been served with this lawsuit and cannot comment until we've had adequate opportunity to review what it alleges."© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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