M&M faces lawsuit by US dealers over fraud
7 Jun 2012 8:30 AM IST
A group of automobile dealers in the US has filed a lawsuit against Mahindra & Mahindra [M&M], accusing fraud, misrepresentation and conspiracy, which the Indian firm has denied.
According to Michael Diaz, managing partner of Diaz Reus and Targ, the law firm that is representing various dealers, the lawsuit alleges that ‘Mahindra duped hundreds of US auto dealers and walked away with more than $60 million in cash and trade secrets’.
‘Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the US market. However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets and began pursuing other partners in the US and elsewhere in clear violation of their commitment,’ Diaz said in a statement.
M&M said: ‘Mahindra unequivocally denies all allegations of fraud, misrepresentation and conspiracy.’ The company said it cannot make further comments as ‘the matter is in the courts’.
In the lawsuit, Diaz Reus and Targ alleged that M&M duped hundreds of US automobile dealers and walked away with more than $60 million in cash and trade secrets. The lawsuit was filed on 4 June in the district court in Atlanta.
‘Dealers across across the country paid initial dealership fees, undertook marketing on Mahindra's behalf, built Mahindra showrooms, display platforms and showcases and hired additional personnel, all at Mahindra's urging,’ the statement said.
According to Michael Diaz, managing partner of Diaz Reus and Targ, the law firm that is representing various dealers, the lawsuit alleges that ‘Mahindra duped hundreds of US auto dealers and walked away with more than $60 million in cash and trade secrets’.
‘Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the US market. However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets and began pursuing other partners in the US and elsewhere in clear violation of their commitment,’ Diaz said in a statement.
M&M said: ‘Mahindra unequivocally denies all allegations of fraud, misrepresentation and conspiracy.’ The company said it cannot make further comments as ‘the matter is in the courts’.
In the lawsuit, Diaz Reus and Targ alleged that M&M duped hundreds of US automobile dealers and walked away with more than $60 million in cash and trade secrets. The lawsuit was filed on 4 June in the district court in Atlanta.
‘Dealers across across the country paid initial dealership fees, undertook marketing on Mahindra's behalf, built Mahindra showrooms, display platforms and showcases and hired additional personnel, all at Mahindra's urging,’ the statement said.
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