A Dutch non-profit foundation has initiated a class action lawsuit against Stellantis, the multinational automotive manufacturing corporation. The lawsuit, filed on Wednesday in the Netherlands, centres on alleged emissions test cheating by Fiat Chrysler Automobiles (FCA), one of Stellantis’ predecessor companies.
The Fiat Chrysler Investors Recovery Stichting, the foundation behind the legal action, claims that from at least 2014 to 2017, Fiat Chrysler failed to disclose the installation of illegal software in its vehicles. This software, according to the foundation, was designed to conceal actual emissions levels during testing procedures. The legal complaint argues that this deception “significantly harmed investors buying and/or holding Fiat Chrysler shares” during this period.
Scott+Scott, the law firm representing the foundation, issued a statement detailing the allegations. The firm emphasised that the lawsuit targets investors who purchased or held Fiat Chrysler shares on the Milan stock exchange between October 2014 and May 2017, outlining the potential scope of affected parties.
Stellantis, formed in early 2021 through the merger of Fiat Chrysler Automobiles and France’s PSA Group, has responded to the allegations. In a statement, the company asserted that it “believes that this lawsuit is without merit and intends to defend itself vigorously.” This stance sets the stage for what could be a protracted legal battle.
The lawsuit comes in the wake of a guilty plea by FCA US LLC, a unit of Stellantis, to criminal conspiracy charges in 2022. This plea was part of a multi-year investigation by the U.S. Justice Department into diesel-emissions fraud, highlighting the broader context of emissions-related controversies in the automotive industry.
Flip Schreurs, chair of the Fiat Chrysler Investors Recovery Stichting, emphasised the significance of the legal action, stating, “This emission scandal was hidden by Fiat Chrysler for years and has impacted thousands of investors. It is overdue that the car manufacturer is being held accountable through this class action.”
The foundation’s website reveals that an external financier associated with U.S. asset manager Fortress Investment Group is funding the claim, adding another layer of complexity to the case.
This legal action is part of a wider scrutiny facing several carmakers in Europe in the aftermath of Volkswagen’s dieselgate emissions scandal. Fiat Chrysler, Peugeot maker PSA, and Opel – all now brands under the Stellantis umbrella – have been under investigation along with other automotive manufacturers.
Jan-Willem De Jong, a partner at Scott+Scott, provided further details on the legal proceedings. The case was submitted to the District Court North-Holland in the Netherlands on Wednesday, with Stellantis having been notified on Tuesday. The court is expected to decide on the next steps in the legal process on December 4, setting a timeline for the unfolding of this significant case.
This lawsuit represents a continuation of the automotive industry’s ongoing struggle with emissions-related controversies and regulatory compliance. It underscores the growing pressure on car manufacturers to ensure transparency and adherence to environmental standards, as well as the increasing willingness of investor groups to seek legal recourse for alleged corporate misconduct.
As the case progresses, it will likely attract significant attention from investors, environmental advocates, and industry observers alike, potentially setting precedents for future litigation in the automotive sector and reinforcing the importance of corporate transparency and environmental responsibility.