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lawsuit

Federal Judge Dismisses GAP Coverage Lawsuit

BALTIMORE — A federal judge threw out a proposed class-action suit last month against the Pohanka Auto Group, which claimed the dealer group’s GAP coverage was “phony” because it did not meet the definition of a debt-cancellation agreement under Maryland law. Judge Deborah K. Chasanow dismissed the putative class action against Pohanka’s 11 dealerships because ... Read More »

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GM Sued for $10 Billion Over Losses on Recalled Cars

General Motors was hit with its biggest lawsuit so far over serial recalls, brought on behalf of drivers of 27 million vehicles who are seeking more than $10 billion in compensation for fallen car prices, reported Detroit Free Press. The class action against GM aims to represent everyone who bought or leased a recalled car ... Read More »

Court Upholds $15.6M Verdict Against Toyota Dealerships

HARRISBURG, Pa. — The state Superior Court upheld a ruling last week that awarded the driver and five passengers in a Toyota minivan $15.6 million from Center City Toyota and Ardmore Toyota. The plaintiffs alleged that the dealerships had failed to properly inspect the vehicle, which malfunctioned and careened into a ravine, reports The Legal ... Read More »

Minnesota AG Sues EFG Over Service-Contract Refunds

PAUL, Minn. — Minnesota Attorney General Lori Swanson filed a lawsuit on Sept. 24 against Irving, Texas-based Enterprise Financial Group Inc. (EFG Companies), charging the F&I product provider with violating three consumer-protection laws for the way it handled service-contract cancellations and consumer refunds. Filed in Hennepin County District Court, the complaint, which seeks unspecified civil ... Read More »

Judge Allows Antitrust Lawsuit Against CARFAX to Proceed

MINEOLA, N.Y. — This week, A federal judge denied a motion filed by CARFAX to dismiss a $350 million antitrust lawsuit brought against the provider of vehicle history reports by more than 750 dealerships. The case, filed by Bellavia Blat on behalf of the dealers in April 2013, is being heard in the U.S. District ... Read More »

Former Used Car Dealer Pleads Guilty for Cheating Customers

SPRINGFIELD, Mo. – A former used car dealer admits he sold cars with faked odometer readings, reported KY3 News. Ashley Bolton pleaded guilty in Greene County Circuit Court to two counts of using deceptive business practices. His sentencing hearing is scheduled for Dec. 10, and he could face sentences of two to four years in ... Read More »

Carfax Lawsuit Now Lists More Than 700 Plaintiffs

MINEOLA, N.Y. — The law firm that filed a $350 million antitrust lawsuit against Carfax now represents over 700 dealership plaintiffs — up from just 124 when the suit was originally filed in May 2013. Bellavia Blatt Andron & Crossett, P.C. alleges that Carfax has illegal alliances with key players in the auto industry, which ... Read More »

GM Must Face Suit Claiming it Covered Up Ignition-Switch Defect

General Motors Co has lost its bid to dismiss a lawsuit accusing the automaker of concealing critical evidence about a faulty ignition switch linked to the death of a Georgia woman in 2010, reported Reuters. During a hearing on Saturday, Cobb County State Court Judge Kathryn Tanksley denied GM’s motion to dismiss the new lawsuit ... Read More »

GM Receives 120 Claims Tied to Ignition-Switch Defect

In its first eight days, General Motors Co.’s compensation program has received about 120 claims, more than half of which involved deaths allegedly linked to GM cars that were recalled earlier this year to fix an ignition-switch defect, reported The Wall Street Journal. Kenneth Feinberg, the lawyer hired by GM to oversee the program, said ... Read More »

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Federal Judge Sends Key GM Case to Georgia Court

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