Judge Allows Dealer Class Action to Proceed Against Subaru of New England For Now But Strikes Racketeering Claim. A New Hampshire federal judge ruled Friday in a 41-page opinion that the racketeering and extortion claims of New England's current and former Subaru dealers against their distributor should be dismissed. The dealers accused their distributor of "padding cars with unwanted options to boost profits at [the dealers'] expense." The court held that plaintiffs had not presented viable claims and acknowledged Subaru of New England's right to withhold certain cars and to require its dealers to accept higher-end, accessorized cars as part of a negotiation process to get cars they need. The judge also entered a rule to show cause on the dealers' coercion claims, ordering the dealers to show cause why the class should not be decertified on these fact-specific claims.
Posted by franchiselawblog at October 1, 2003 07:25 PM