Detroit, Michigan — The U.S. Securities and Exchange Commission announced on September 28th that Fiat Chrysler Automobiles N.V. had agreed to settle charges it made misleading disclosures about an internal audit of its emissions control systems.
The SEC found that in 2016, FCA represented in both a press release and an annual report that it conducted an audit that confirmed FCA’s vehicles complied with environmental regulations, particularly concerning emissions.
FCA’s statements did not disclose the limited scope of the audit, which was focused on only finding a certain type of defeat device, and that the audit did not get a comprehensive review of FCA’s adherence to U.S. emissions regulations.
When FCA made the above statements the U.S. Environmental Protection Agency (EPA) and California Air Resource Board (CARB) had previously raised concerns to the FCA about the emissions of some of their diesel vehicles.
The order from SEC found that the FCA had violated the reporting provisions of the federal securities laws. The FCA then agreed to cease and desist from committing violations of these provisions and also paid a $9.5 million civil penalty.
