RADNOR, Pa., July 29, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that it has filed a shareholder class action lawsuit against Fiat Chrysler Automobiles N.V. (NYSE: FCAU) ("FCA" or the "Company") on behalf of purchasers of the Company's securities between October 29, 2014 and July 18, 2016, inclusive (the "Class Period"). The action was filed in the U.S. District Court for the Eastern District of Michigan and is captioned Samaras v. Fiat Chrysler Automobiles N.V., et al., No. 2:16-cv-12803-LVP-SDD.
Shareholders who purchased FCA securities during the Class Period may, no later than September 27, 2016, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information, or to view a copy of the complaint, please visit https://www.ktmc.com/new-cases/fiat-chrysler-automobiles-nv-2016#join.
FCA shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or at [email protected].
FCA is an international automotive group engaged in designing, engineering, manufacturing, distributing, and selling vehicles, components, and production systems. The Company's vehicles are produced for the mass market under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brands and the SRT performance vehicle designation. The Company sells vehicles in the United States through its U.S. subsidiary, FCA US LLC ("FCA US").
The complaint alleges that throughout the Class Period the defendants made false and misleading statements and failed to disclose material adverse facts about the Company's business and operations to investors. Specifically, the defendants misrepresented the Company's growth by purposefully inflating FCA's vehicle sales numbers and falsely touting the Company's streak of U.S. monthly vehicle sales growth (on a year-over-year basis).
As detailed in the complaint, the truth about FCA's business practices began to surface on January 12, 2016, when an FCA-affiliated dealer filed a lawsuit accusing FCA US of paying dealers to improperly inflate vehicle sales numbers by reporting unsold vehicles as sold and then reversing those fictional sales during the following month. After news outlets reported the lawsuit, the price of the Company's common shares declined $0.66 per share, or more than 8%, from a closing price of $8.19 per share on January 12, 2016 to close at $7.53 per share on January 14, 2016.
On July 18, 2016, several news outlets reported that the Department of Justice ("DOJ") and the Securities and Exchange Commission ("SEC") were investigating the Company's sales practices. On that same day, FCA issued a press release confirming that it was cooperating with an SEC investigation into FCA's reporting of vehicle sales to "end customers" in the U.S., and that the DOJ was also investigating. Following this news, the price of the Company's common shares declined $0.19 per share, or nearly 3%, from a closing price of $6.75 per share on July 15, 2016 to close at $6.56 per share on July 19, 2016.
Finally, on July 26, 2016, the Company announced that it had revised the way it reports monthly U.S. vehicle sales – revealing that its much publicized 75-month streak of U.S. monthly vehicle sales growth (on a year-over-year basis) actually ended at 40 months in September 2013.
FCA shareholders may, no later than September 27, 2016, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP