SEC, Justice Department probe FCA over sales numbers

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Fiat Chrysler Automobiles [NYSE:FCAU] on Monday confirmed an investigation by the Securities and Exchange Commission and Justice Department into sales numbers reported in its financial statements.

The investigation comes after a pair of Chicago-area dealers in January filed civil lawsuits against FCA that challenged the automaker’s sales numbers, alleging certain dealers were paid to report false sales.

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While FCA has denied those claims, the company has said it records revenues based on shipments to dealers and customers, and not purely on reported vehicle unit sales to end customers. FCA has been reporting stellar sales numbers over the past couple of years, including year-over-year monthly sales gains for the past 75 months.

According to a report today from Bloomberg, which cited comments from inside sources, authorities are looking at whether FCA violated U.S. securities laws.

FCA says it is fully cooperating with the investigation.

Stay tuned for an update.

 
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