The case was brought against Mr Campbell in May 2015, with FCA Australia alleging that he misappropriated and misused more than $30 million worth of company funds during his two-and-a-half-year tenure at the helm of the car-making giant’s local arm.
Over and out: The case against Clyde Campbell and his predecessor Veronica Johns has settled in the Federal Court of Melbourne.
Mr Campbell’s wife Simone and his predecessor in the role of CEO, Veronica Johns, were also included in the suit.
A statement from FCA Australia confirmed the outcome, but as expected, could not provide information on the details of the settlement.
Clyde Campbell
“The parties to the FCA Australia v Clyde Campbell legal proceeding have agreed to a settlement without admission of liability of any party,” the statement read.
“The terms of the settlement are both confidential and mutually acceptable.”
In the original statement of claim filed in May last year, FCA Australia alleged a number of examples of misuse of company funds, some of which was allegedly directed to businesses controlled or owned by Mr Campbell, his wife Simone and other business associates.
Following confirmation of the proceedings last year, Mr Campbell described the action as “scandalous”, adding that it was an attempt by FCA Australia to blacken his name and that the action would be found to be “wrong” and “embarrassing” for FCA Australia.
Veronica Johns
Ms Johns was added to the lawsuit in September 2015 as the second respondent, while in the amended statement of claim, it was alleged that Ms Campbell benefited from more than $600,000 in kickbacks.
Further changes were made to the allegations in July this year, with the car-maker dropping various claims against Mr Campbell and instead increasing its focus on Ms Campbell and British company Motortrak which had contracted for FCA Australia providing dealer website support.
The allegations began to surface shortly after Pat Dougherty took the reins at FCA Australia in late 2014, when he replaced Ms Johns.
Mr Dougherty remained president and CEO as the case unfolded but was succeeded in August this year by former FCA UK managing director and head of the Jeep brand for Europe, Middle East and Africa, Steve Zanlunghi.
In October last year Mr Dougherty told GoAuto that the legal proceedings and resulting media interest had not had an impact at a dealer or consumer level.
“The way we measure that is we talk to our dealers,” he said. “We say, ‘Has any of this media caused any deterrent in shoppers or buyers?’ They say, ‘The people that have come in and talked about this, they don’t even know anything about it.’”
A case management hearing is set for the Federal Court of Melbourne on Friday, October 28, which is 30 days from the previous court date. This will be when the court officially finalises the settlement.
By Tim Nicholson
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