A law firm from Canada has announced a lawsuit against Fiat Chrysler Automobiles, the third largest US automaker and the world’s seventh biggest, asking four billion dollars as compensation.
The damages are pursued in connection to the latest, massive recall initiated by the Italian-American automaker earlier this month. Merchant Law Group claimed the lawsuit, seeking full class action status, was filed in the Superior Court in Montreal, with claims to also be filed later this week in courts in Ontario, British Columbia, Saskatchewan and Nova Scotia. According to a FCA spokesperson, the company had not been served the lawsuit and would not comment until it had a chance to see and study the allegations and claims stemming from the court action. The company’s Milan-listed shares (this is the secondary listing, the primary one is on the New York Stock Exchange) registered a massive plunge at the start of the week and had to be suspended because of the latest worries about the impact of recalls announced in the United States most recently.
The company announced last Friday it would recall 1.4 million autos in the United States to update the software in order to prevent malicious hacking that could lend them remote control over the vehicle. The US auto safety regulator, the National Highway Traffic Safety Administration (NHTSA), also announced a record $105 million fine and a consent order that included the repurchase of yet to be repaired vehicles because FCA had serious lapses in the procedures of its safety campaigns that affected millions of autos.