Category Archives: litigation

Parts Maker Sinister Diesel to Pay $1 Million After Guilty Plea

The defendant is scheduled to be sentenced in the criminal case by US District Court Judge John A. Mendez for the Eastern District of California on 14 November 2023. Although Sinister Diesel agreed to pay a $500,000 criminal fine under its plea agreement, the company faces – for each count – a maximum fine of $500,000 or twice the gross pecuniary gain derived from the offense. Its sentence will be determined at the discretion of the court after consideration of all applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables. Continue reading

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Consumer Rights Nil in New Autonomous Vehicle Bills?

The Center for Auto Safety says one of the proposals, the SELF DRIVE Act, “neglects to include any consumer protections that prevent the use of binding arbitration clauses in contracts involving autonomous vehicles.” As is common in Washington the legislation is misleadingly named. However, there is a need to explore the issue as there are arguments on many aspects of technology and systems that can save lives and reduce traffic congestion even though AutoInformed remains skeptical about the ability of politicians to do so with a regard for We the People  as opposed to We the Congress who are paid large sums by corporate interests. Continue reading

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Repair Shop Owner Sentenced to Prison for False Tax Return

In 2011, Ferrari used business funds to pay for personal items, including gambling on horse races. Ferrari concealed this diversion of business income by not disclosing it to his return preparer, thus causing the preparation and filing of a false corporate tax return. Furthermore, Ferrari did not pay employment taxes in the amount of $291,600 based on an unreported cash payroll, according to court documents. Continue reading

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Record Clean Air Act Settlement with BP North America

The Department of Justice’s complaint complaint, filed simultaneously with the settlement, alleges that BPP broke federal regulations limiting benzene in refinery wastewater streams, and hazardous air pollutants and volatile organic compound emissions at its Whiting Refinery, as well as the general requirement to use good air pollution control practices. As part of the settlement, BPP will install one or more permanent benzene strippers to reduce benzene in wastewater streams leading to its lakefront wastewater treatment plant. Continue reading

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GM Expands Airbag Recalls Over Supplier ARC’s Objections

In an unusual move, NHTSA publicly revealed that it wrote Arc: “As you are aware, on July 13, 2015, the Office of Defect Investigation (“ODI”) of the National Highway Traffic Safety Administration (“NHTSA” or the “Agency”) opened a Preliminary Evaluation (PE15-027) to investigate certain air bag inflators designed by ARC Automotive, Inc. (ARC). NHTSA opened its defect investigation after learning of two driver air bag inflator field ruptures involving ARC designed inflators,” NHTSA wrote. Continue reading

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Tesoro Refining to Pay Penalty for Consent Decree Violations

“Tesoro did not meet the consent decree pollution limit because it did not install adequate pollution controls,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “As this settlement shows, EPA will seek substantial penalties when companies delay installing appropriate pollution controls to meet environmental obligations.” Continue reading

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Illegally Towed Vehicles – DOJ Helping Service Members

Under the proposed consent order, which awaits approved by the court*, Steve’s Towing will pay $67,500 to the seven SCRA-protected service members referenced in the United States’ complaint, up to $12,500 to compensate additional SCRA-protected service members whose vehicles Steve’s Towing may have sold without first obtaining court orders and a $10,000 civil penalty. Steve’s Towing will also be required to provide SCRA training to its employees and to develop new policies and procedures consistent with the SCRA.This of course comes at a time when local, state and nationally elected Republicans are trying to de-fund and disrupt the US justice system. Continue reading

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EPA Orders Valero Refining to Improve Chemical Safety

“This settlement sends a clear message that EPA will prosecute companies that fail to expend the resources needed to have a compliant, well-functioning Risk Management Plan to the fullest extent of the law,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. Continue reading

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Justice Sues to Block JetBlue’s Purchase of Spirit Airlines

“JetBlue’s proposed acquisition of Spirit eliminates a disruptive, low-cost option for millions of Americans. Whether they fly Spirit or not, travelers throughout the United States benefit from an independent Spirit because where Spirit competes, other airlines – including JetBlue – are forced to compete more vigorously by lowering fares, offering greater innovations, and delivering more consumer choice,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “This transaction occurs against the backdrop of years of airline consolidation in the United States.” Continue reading

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SEC Charges Mining Company Rio Tinto with Bribery

Ford Motor (NYSE: F) and Stellantis (NYSE: STLA) among other large international corporations have supply contracts or business relationships with the mining conglomerate  involving electric vehicle battery materials. Whether this is a bum in the road or a longer-term impediment to EV advancement is an open and ongoing matter subject to debate in industrial and public policy sectors. Continue reading

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SEC Charges Transportation Company Greenbrier for Failing to Disclose Executive Perks and Payments

The SEC’s orders find that Greenbrier and Furman violated negligence-based antifraud and proxy provisions of the federal securities laws and that Greenbrier and Furman also committed or caused reporting, books and records, and internal accounting controls violations of the federal securities laws. Without admitting or denying the SEC’s findings, in addition to penalties, Greenbrier and Furman agreed to cease-and-desist from future violations of the securities laws. Continue reading

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Do No Harm – Center for Auto Safety Drafts AV Bill of Rights

Simply put the draft – covering a wide and formidable list of potential issues – says AVs should “Do no harm!” The draft is an ambitious attempt to learn from the more than a century of automobility and apply the knowledge at the outset of what is expected to be widespread AV use sometime in the, oh, next decade or three. Continue reading

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Acura, Honda Takata Airbag Recall Upgraded to Do Not Drive

The National Highway Traffic Safety Administration, aka NHTSA, urges vehicle owners to immediately check to see if their vehicle has an open Takata air bag recall. If it does, owners need to contact their dealership or Acura/Honda customer service to schedule a FREE repair as soon as possible, as well as free towing or mobile repair. Free loaner and rental vehicles are also available, if needed. Continue reading

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Death of the Diesel – EPA Fines Genesee & Wyoming Railroad Services

GWRSI estimates that the company will spend approximately $42 million to comply with the consent decree requirements which will reduce NOx emissions from its locomotives by approximately 469 tons per year and particulate matter emissions by 14 tons per year. As these things go, this appears to be an amiable settlement to AutoInformed. Continue reading

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GE Engineer Sentenced for Economic Espionage Conspiracy

“This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer and conspired with the government of China to steal innovative American technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”  Continue reading

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