Bosch, Fiat Chrysler Can’t Escape EcoDiesel Emissions Cheating MDL

A mulitdistrict litigation alleging Fiat Chrysler and Bosch conspired to defraud consumers and environmental regulators regarding their emissions cheating EcoDiesel engines will move forward after a federal judge refused to dismiss certain allegations in the case.

U.S. District Judge Edward M. Chen determined that the consumers who brought forward the multidistrict litigation had enough information to merit preserving the Racketeer Influenced and Corrupt Organizations (RICO) claim, which argues that Bosch and Fiat Chrysler knowingly conspired to get around environmental regulations. 

According to Judge Chen, the consumers successfully presented a case that the two companies conspired to sell vehicles containing devices that allowed the vehicles to emit over 20 times the legal limit of nitrogen oxides.

The plaintiffs claim that Fiat Chrysler and Bosch conspired to fit the Chrysler EcoDiesel trucks with a device that enabled vehicles to perform at permitted emissions levels during testing, thus fooling regulators determining if vehicles performed within government regulations, but then allowed the vehicle to produce nitrogen levels at radically higher levels during normal driving.

The consumers allege that individuals who purchased affected vehicles overpaid for the EcoDiesel trucks by $3,120 to $5,000, because the engines did not perform to the advertised standards. Judge Chen decided that this citation of damages constituted an injury to “business or property,” and thus supported the consumers’ claim that the alleged scheme constituted a RICO violation.

In making their argument of alleged financial injury, the consumers state that they would not have paid as much as they did for their vehicles had they known that they did not perform as advertised. They go on to claim that the EcoDiesel trucks were priced higher than other Chrysler trucks purely based on their advertised environmentally friendly design.

In his decision to allow the consumers to claim a RICO injury, Judge Chen cites a previous U.S. Supreme Court decision. In his words, the consumers “alleged overpayment for the defective class vehicles is an injury to a ‘property interest’ because plaintiffs allege that they have been deprived of their money, which is a form of property. The alleged overpayment is also a concrete, ‘out-of-pocket’ loss, not a ‘mere injury to a valuable intangible property interest.'”

However, Judge Chen will not allow another claim to move forward — one that accused Bosch specifically of aiding and abetting a RICO violation.

The judge goes on to agree with consumers that the information provided about the claim to argue that Bosch and Fiat Chrysler did conspire with one another to produce and sell vehicles that dodged emissions regulations.

Finally, Judge Chen threw out claims of breach of implied warranty, as well as punitive claims under numerous state laws.

The consumers are represented by Elizabeth J. Cabraser, David. S. Stellings, Kevin R. Budner, Phong-Chau G. Nguyen and Wilson M. Dunlavey of Lieff Cabraser Heimann & Bernstein LLP and by steering committee members Roland K. Tellis of Baron & Budd PC, W. Daniel Miles III of Beasley Allen Crow Methvin Portis & Miles PC, Lesley E. Weaver of Bleichmar Fonti & Auld LLP, Steve W. Berman of Hagens Berman Sobol Shapiro LLP, Joseph F. Rice of Motley Rice LLC, David S. Casey Jr. of Casey Gerry Schenk Francavilla Blatt & Penfield LLP, Lynn Lincoln Sarko of Keller Rohrback LLP, Rachel L. Jensen of Robbins Geller Rudman & Dowd LLP, and Stacey P. Slaughter of Robins Kaplan LLP.

The Fiat Chrysler Fraudulent Emissions Reporting Multidistrict Litigation is In re: Chrysler-Dodge-Jeep EcoDiesel Marketing, Sales Practices and Products Liability Litigation, Case No. 3:17-md-02777, in the U.S. District Court for the Northern District of California.

UPDATE April 13, 2018: Fiat Chrysler enters settlement talks with the U.S. Justice Department to resolve emissions cheating class action lawsuit.

UPDATE 2: On Aug. 29, 2018, plaintiffs in a Fiat Chrysler emissions class action argued that they are direct victims of the alleged emissions cheating scheme, qualifying them for RICO claims.

UPDATE 3: On Oct. 17, 2018, Fiat Chrysler asked a federal judge to reject consumers’ bid for Class certification in an EcoDiesel multidistrict litigation, because the company says the consumers’ expert is unreliable.

UPDATE 4: On Jan. 10, 2019, Fiat Chrysler will pay up to a total of $884 million to end allegations that the company installed software in some of its diesel vehicles that enabled the vehicles to perform at legal emissions standards during testing and then produce much more pollution than is legally allowed when the vehicles are driven normally.

UPDATE 5: On Jan. 23, 2019, a federal judge recently revealed that he’s “very much inclined” to grant preliminary approval to a $307 million Fiat Chrysler emissions settlement.

UPDATE 6: March 2019, the Jeep Grand Cherokee, Ram 1500 EcoDiesel class action settlement is now open. Click here to file a claim.