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Dealer Group Files Class Action Lawsuit Against Volkswagen

CHICAGO — On Wednesday, Ed Napleton, president of the Napleton Auto Group, filed a class action lawsuit against Volkswagen in the U.S. District Court for the Northern District of Illinois on behalf of three of his Volkswagen dealerships. The lawsuit stated that the manufacturer intentionally defrauded dealers by installing “defeat devices” in its diesel cars. ... Read More »

VW Faces Billions in Fines as U.S. Sues for Environmental Violations

The U.S. Justice Department has sued Volkswagen for up to $48 billion for allegedly violating environmental laws – a reminder of the carmaker’s problems nearly four months after its emissions scandal broke. Although such U.S. lawsuits are typically settled at a fraction of the theoretical maximum penalty, analysts said the size of the claim meant ... Read More »

Firm Suing TrueCar Files Second Mass Action Lawsuit

MINEOLA, N.Y. — Bellavia Blatt & Crossett filed a second mass action lawsuit against TrueCar on July 30, this time representing 100 dealerships that are currently affiliated with the car-shopping site. In March, the law firm filed a mass action lawsuit on behalf of 117 — now over 200 — non-affiliated dealerships, alleging that TrueCar’s business practices ... Read More »

Mass Action Suit Filed Against TrueCar

MINEOLA, N.Y. — The law firm of Bellavia Blatt & Crossett filed a mass action lawsuit against TrueCar today, claiming that dealers have been injured by the lead provider’s business practices. So far, 117 dealerships are part of the suit — a number Senior Partner Leonard Bellavia expects to rise drastically. “I have another 50 ... Read More »

Ala. AG Shuts Down Dealer for Fraud

MONTGOMERY, Ala. — A county circuit judge has granted Alabama Attorney General Luther Strange a temporary restraining order against of Quality Used Cars and its associate Preowned Automotive, as well as permission to seize the dealer’s property. The dealerships have been owned and operated by Clayton and Connie Reeves since 2009. The Attorney General’s lawsuit ... Read More »

GM Ignition Compensation Death Claims Rise to 49

General Motors’ ignition compensation fund said Monday it has approved 49 death claims, four more than the previous week, along with five new injury claims, reported The Detroit News. In total, GM compensation adviser Kenneth Feinberg has approved claims for 49 fatalities and 72 injury claims linked to defective ignition switches through Jan. 16, his ... Read More »

Minn. AG’s Lawsuit Against EFG Dismissed

PAUL, Minn. — Minnesota Attorney General Lori Swanson’s lawsuit against EFG Companies regarding its direct-to-consumer sales of vehicle service contracts was dismissed on Dec. 24, 2014, 90 days after it was filed in the Fourth Judicial District Court. On Sept. 24, 2014, the attorney general charged the F&I product provider with violating three consumer-protection laws ... Read More »

N.Y. Shuts Down Subprime Auto Lender

NEW YORK — The New York State Department of Financial Services (NYDFS) submitted last week a final consent judgment to settle its lawsuit against Condor Capital Corporation, a subprime auto lender based in Long Island, and its sole shareholder, Stephen Baron. Among other violations, the defendants deceptively retained millions of dollars owed to vulnerable borrowers ... Read More »

GM Urges Judge to Bar $10 Billion Ignition-Claim Lawsuits

General Motors Co. (GM) urged a judge to reject lawsuits demanding $10 billion for the lost value of millions of cars recalled this year for ignition-switch fixes and other flaws, reported Bloomberg. The automaker yesterday told U.S. Bankruptcy Judge Robert Gerber in Manhattan that he freed it from responsibility for past errors when he signed ... Read More »

Court Tosses Saab Suit Against GM

WASHINGTON — A federal appeals court on Friday upheld a decision to dismiss a $3 billion 2012 suit brought by Dutch carmaker Spyker Cars NV against General Motors Co. for blocking its sale of Saab Automotive AB to a Chinese buyer, reported The Detroit News. The suit contended that GM — which sold its struggling ... Read More »