Fiat-Chrysler Automobiles (FCAU  ) is the target of a new lawsuit by General Motors (GM  ), accusing the automaker of engaging in racketeering practices that disrupted GM's negotiations with United Auto Workers. The lawsuit comes amid a far-reaching federal investigation that has uncovered years' worth of corruption within the Italian-American automaker.

GM's lawsuit alleges that FCA CEO Sergio Marchionne engaged in a year's long conspiracy to undermine GM's negotiations with the UAW to hurt the company financially. According to GM's filings, Marchionne solicited the help of UAW President Dennis Williams, a longtime friend of his, for the effort to undermine GM's position in the US automobile market. The lawsuit goes on to state "Williams was a willing participant in Marchionne's bribery and takeover scheme, especially given the UAW's finances, in 2013, the UAW's financial circumstances were so dire that it sold $47 million in assets and raid(ed) its strike fund to pay operating expenses."

To summarize the accusations from the lawsuit, FCA supposedly paid out millions of dollars in bribes to obtain leverage over GM by gaining favor with UAW by means of concessions and advantageous bargaining positions when it came to negotiating labor contracts, all the while working to undermine GM's position in the hopes of weakening it so that FCA could potentially acquire GM as it had Chrysler.

The lawsuit has been based around the 1970 Racketeer Influenced and Corrupt Organization Act, which was passed with the intent to combat corruptive practices by private enterprises. The RICO act makes it illegal for any employee or representative of a private enterprise to engage in activities that adversely affect commerce, e.g., racketeering. If GM can sufficiently prove that FCA's alleged racketeering activities have hurt it, then it may be able to secure significant damages from the company.

While the federal investigation into FCA has led to indictments of senior executives, some are uncertain that GM will be able to sufficiently prove that the corrupt practices that Fiat-Chrysler engaged in hurt the automaker. Plainly put, while FCA has definitively engaged in corrupt practices, as federal prosecutors have revealed, it may be difficult to definitively prove that GM's financial performance was adversely affected as a direct result. Speaking to the Detroit Free Press, RICO lawyer Thomas Ajamie stated "The issue here is not the claim but the damages. General Motors has to prove what we call causation. Let's say all these things occurred with the UAW. FCA isn't going to say these things didn't occur. People have been convicted. But did it result in poor earnings for GM? What if their pricing stinks or it's a poorly run company? They can say people did illegal things, and some went to jail, but it didn't damage GM. GM has got to show damage."

Despite the overwhelming evidence of wrongdoing at Fiat-Chrysler, the burden of proof that General Motors was adversely affected lies with the company's lawyers. It will likely require GM's lawyers to review the evidence turned up by federal prosecutors to establish a narrative of FCA actively working to undermine the company, and whether or not this narrative can be conclusively established remains to be seen.