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Fiat Chrysler fined $40 million for sales-reporting fraud
The stock is down about 11 per cent this year

September 28, 2019

New York: Fiat Chrysler Automobiles NV agreed to pay a $40 million penalty related to years of sales reports the US Securities and Exchange Commission said were fraudulent.

The Italian-American automaker issued statements that misled investors by wrongly claiming a years-long streak of monthly gains, the SEC said Friday. Fiat Chrysler inflated results by paying dealers to report fake sales. The company also maintained a database of actual-but-unreported figures that employees could tap into to falsely post continued growth, according to the regulator.

“New-vehicle sales figures provide investors insight into the demand for an automaker’s products, a key factor in assessing the company’s performance,” Antonia Chion, associate director in the SEC’s enforcement division, said in a statement. “This case underscores the need for companies to truthfully disclose their key performance indicators.”

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