Fiat Chrysler Automobiles NV and FCA US LLC agreed to pay $40 million to settle charges by the SEC alleging the automaker misled investors with falsified monthly sales reports, the SEC said Sept. 27.
Fiat Chrysler allegedly fabricated its press releases on monthly sales, touting a streak of monthly year-over-year sales growth consecutively between 2012 and 2016. According to the SEC, the growth streak had been broken in September 2013.
"The SEC's order finds that FCA US inflated new vehicle sales results by paying dealers to report fake vehicle sales and maintaining a database of actual but unreported sales, which employees often referred to as a 'cookie jar,'" the SEC said in a statement.
Fiat Chrysler did not admit or deny the allegations. "The company has reviewed and refined its policies and procedures and is committed to maintaining strong controls regarding its sales reporting," said Fiat Chrysler.
In July, Fiat Chrysler released its final monthly sales report. The company decided to switch to quarterly reporting.
