RICO Suit
In an extraordinary move, automaker GM has targeted a competitor, FCA, with a Racketeer Influenced and Corrupt Organizations Act (RICO) suit. GM alleges that FCA bribed the United Auto Workers union officials and union members to keep its labor costs down while forcing GM to pay more. It’s a crisis for FCA and potentially a reputation problem for both companies. If GM loses the suit, it will sustain a black eye as a corporation. If FCA loses, it will be a blow to a struggling company. One cannot believe that GM undertook this suit lightly. It must have sufficient evidence to make the claim. The question now is whether it can prove it in court.
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