Fiat Chrysler investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Fiat Chrysler was formed in October 2014 as the result of a merger of Fiat Group Automobiles and Chrysler LLC.
The complaint alleges that Fiat Chrysler and certain of its executive officers made a series of false and/or misleading statements during the Class Period, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, it is alleged that the defendants made false and misleading statements and/or failed to disclose that: (i) flaws in the Company’s manufacturing processes, supply chain, electronic security measures, and/or quality control rendered at least 3.1 million Chrysler cars and trucks unsafe to drive; (ii) the Company’s slow completion rates for recalls, slow or inadequate notifications to consumers, and faulty approaches to addressing safety issues and improper actions by dealers were not in compliance with federal laws and regulations; and (iii) as a result of the foregoing, Defendants’ statements about Fiat Chrysler’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
As detailed in the complaint, on June 28, 2015, Fiat Chrysler announced a recall of certain 2015 Jeep Grand Cherokee and Dodge Durango vehicles because they “may have been inadvertently equipped with improperly heat-treated suspension components.” On this news, shares of the Company’s stock declined $1.06 per share, or 6.8%, to close on June 29, 2015 at $14.53 per share.
On July 24, 2015, Fiat Chrysler announced another recall of certain 2015 Jeep Grand Cherokee and Dodge Durango vehicles “after it was demonstrated that a security flaw in the vehicles’ systems rendered the vehicles vulnerable to remote electronic manipulation (‘hacking’), including cutting the vehicle’s brakes, shutting down the vehicle’s engine, steering the vehicle off the road, and shutting down the vehicle’s electronics systems.” On this news, shares of the Company’s stock declined $0.39, or 2.5%, to close at $15.15 per share on July 24, 2015.
On July 26, 2015, the National Highway Traffic Safety Administration (“NHTSA”) announced that it was imposing a record $105 million fine on the Company in connection with the Company’s handling of 23 previous recalls affecting more than 11 million vehicles. As detailed in the complaint, the penalties were tied to violations in an array of areas, including misleading regulators, inadequate repairs, and failure to alert affected car owners in a timely manner. On this news, shares of the Company’s stock declined $0.74 per share, or approximately 4.9%, to close at $14.41 per share on July 27, 2015.
Fiat Chrysler shareholders who purchased their securities between August 1, 2014 and July 24, 2015 may, no later than November 10, 2015, petition the Court for appointment as a lead plaintiff of the class.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706