Tuesday, 29 September 2020 16:45

Fiat Chrysler Agrees to Pay $9.5 Million Penalty for Disclosure Violations


The U.S. Securities and Exchange Commission on Sept 28 announced Fiat Chrysler Automobiles N.V., a London-based public company that sells vehicles through its Michigan-based subsidiary, agreed to settle charges that it made misleading disclosures about an internal audit of its emissions control systems.

The SEC’s order found that in February 2016, FCA represented in both a press release and an annual report that it conducted an internal audit which confirmed FCA’s vehicles complied with environmental regulations concerning emissions. 


As found in the order, FCA’s statements did not sufficiently disclose the limited scope of its internal audit, which focused only on finding a specific type of defeat device, or that the audit was not a comprehensive review of FCA’s compliance with U.S. emissions regulations.


In addition, at the time FCA made these statements, engineers at the U.S. Environmental Protection Agency (EPA) and California Air Resource Board (CARB) had raised concerns to FCA about the emissions systems in certain of its diesel vehicles.


“This case demonstrates the importance of public companies providing accurate and complete information to investors,” said Joel R. Levin, regional director of the SEC’s Chicago Regional Office. “At a time of heightened scrutiny of automakers’ regulatory compliance, FCA provided misleading assurances to investors by not disclosing the limitations of its internal audit.”

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