Used Car News | Home
- Hits: 2571
Law firm Bellavia Blatt announced that more than 420 plaintiffs - up from 120 - have joined the mass action lawsuit filed against Carfax.
The additional plaintiffs resulted in Carfax's increased potential liability of more than $150 million, up from $50 million previously.
The lawsuit contends that Carfax's exclusive contracts with industry insiders - among them, Cars.com and AutoTrader.com -- forced auto dealers to sign costly agreements for vehicle history reports. The alleged illegal, anticompetitive practices enabled Carfax to overcharge dealers.
Establishing a monopolistic climate enabled Carfax to publish inaccurate and outdated reports. Customers' demands for free Carfax reports, as advertised on television, compelled dealers to subscribe to Carfax's service. Carfax's anticompetitive practices increased costs to dealers, and ultimately consumers, by hundreds of millions of dollars.
The lawsuit demands a jury trial and seeks treble (three times) damages, interest and attorney's fees. Consequently, a small dealer would potentially recover $105,000; a medium size dealer, $216,000; and a large dealer, $324,000; plus interest and attorney's fees.