FCA Vehicle Owners Say They’re Direct Victims in Emissions Class Action

Plaintiffs in a Fiat Chrysler emissions class action recently argued that they are direct victims of the alleged emissions cheating scheme, qualifying them for RICO claims.

After Fiat Chrysler motioned to dismiss plaintiffs’ Racketeer Influenced and Corrupt Organizations (RICO) Act allegations in their class action, drivers have argued that they are direct victims.

According to plaintiffs in the Fiat Chrysler class action, Fiat Chrysler installed emissions cheating devices in their vehicles which conceal the fact that the vehicles’ emissions are around 20 times the legal limit. The devices allegedly cheat emissions laws by emitting lower levels while being testing, although these levels do not reflect actual emissions.

Fiat Chrysler’s recent attempt to dismiss the drivers’ RICO claims is the latest in a series of attempts to trim the FCA class action lawsuit. Fiat Chrysler argued that only regulators such as the U.S. Environmental Protection Agency (EPA) are eligible for relief under RICO. Plaintiffs refuted this reasoning, claiming that they are direct victims of the alleged scheme and therefore entitled to relief under RICO.

“Defendants attempt to hijack the phrase ‘fraud-­on-­the-­regulators’ used in the court’s [March] dismissal order in furtherance of their strained attack on proximate causation,” plaintiffs argued. “The essence of plaintiffs’ RICO claim, however, is not only a fraud on the regulators; it is a fraud through the regulators. Defendants deceived regulators to defraud consumers, who were the intended and actual victims of defendants’ scheme. This distinction makes all the difference.”

Fiat Chrysler’s recent attempt to invalidate plaintiff RICO claims is the latest of many attempts. In March 2018, U.S. District Judge Edward M. Chen refused to dismiss RICO claims against Fiat Chrysler, allowing the multidistrict litigation to move forward. Judge Chen found that consumers brought enough information and evidence to preserve their RICO claims, despite Fiat Chrysler’s arguments.

Although consumer claims continue to be contested, Fiat Chrysler recently entered into advanced settlement talks with the U.S. Justice Department and the California Air Resources Board. Settlement estimates have not yet been released, but current talks propose provisions to compensate owners of the affected vehicles. Fiat Chrysler may also be responsible for paying state and federal fines, although no amounts have been released.

Plaintiffs 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, 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, and Stacey P. Slaughter of Robins Kaplan LLP, among others.

The Fiat Chrysler Emissions Class Action Lawsuit 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: 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 2: 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 3: 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 4: March 2019, the Jeep Grand Cherokee, Ram 1500 EcoDiesel class action settlement is now open. Click here to file a claim.