Fiat Chrysler Emissions Defeat Device Lawsuit Heads to California

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A lawsuit filed by the U.S. Justice Department alleging Fiat Chrysler cheated emissions tests by using defeat devices will be moved to California to join pending litigation there, the Judicial Panel on Multidistrict Litigation ordered Wednesday.

The U.S. Justice Department hit the car company with the lawsuit after the Environmental Protection Agency claimed that devices were being used to skirt emissions standards. The EPA later joined the claims brought under the Clean Air Act alleging that Fiat Chrysler equipped Ram 1500 and Jeep Grand Cherokees with eight software-based features that were designed to beat emissions testing.

The JPML noted that 10 related legal actions, including multiple consumer fraud class action lawsuits, are currently pending in California federal court. “It appears that the action(s) on this conditional transfer order involve questions of fact that are common to the actions previously transferred to the Northern District of California and assigned to Judge [Edward M.] Chen,” the panel wrote.

The allegations stem from an announcement made by the EPA and the California Air Resources Board in January stating that Fiat Chrysler failed to disclose software that was used to defeat emissions check systems. Vehicle emissions, like nitrogen oxide, meant to be controlled by emissions checks have been linked to major health issues, such as respiratory and cardiovascular problems.

The Justice Department and EPA alleges that nearly 104,000 Fiat Chrysler vehicles equipped with an EcoDiesel V6 engine and sold between 2013 and 2016 contain emissions defeat devices. The EPA alleges that Fiat Chrysler’s failure to disclose the existence of these devices in their vehicles is a “clear and serious violation of the Clean Air Act.”

According to a class action lawsuit filed in December of 2016, owners of affected vehicles were duped by Fiat Chrysler into purchasing what they thought were environmentally friendly vehicles. The plaintiff claims that vehicles with the emissions defeat devices are actually worth nearly $5,000 less than what they paid.

Fiat Chrysler is also being investigated by French authorities for its diesel vehicle emissions and in February, the Justice Department and several state attorneys along with the U.S. Securities and Exchange Commission also begin investigating possible diesel emissions cheating violations.

The plaintiffs in the Fiat Chrysler emissions cheating class action lawsuit are represented by Steve W. Berman, Shana E. Scarlett and Jessica M. Thompson of Hagens Berman Sobol Shapiro LLP, Peter B. Fredman of the Law Office of Peter Fredman PC, Christopher A. Seeger of Seeger Weiss LLP, James E. Cecchi of Carella, Byrne, Cecchi, Olstein, Brody & Agnello PC, and Robert C. Hilliard of Hilliard Munoz Gonzales LLP.

Representing the U.S. are attorneys Jeffrey H. Wood, Leigh P. Rendé, Joseph W.C. Warren and Emily Powers of the U.S. Department of Justice’s Environmental and Natural Resources Division, with local assistance from Lynn Dodge and Daniel L. Lemisch of the U.S. Attorney’s Office for the Eastern District of Michigan. EPA attorneys Kathryn Pirotta Caballero and Caitlin Meisenbach serve as Of Counsel.

The Fiat Chrysler Emissions Defeat Device Lawsuit is United States v. Fiat Chrysler Automobiles NV, et al., Case No. 5:17-cv-11633, in the U.S. District Court for the Eastern District of Michigan.