Judge Allows Dealers' Antitrust Lawsuit Against CARFAX to Proceed
Mineola, N.Y., October 1, 2014-In a decision issued this week, the Federal Court denied a motion filed by CARFAX to dismiss Bellavia Blatt's $350 million antitrust case lawsuit. The case will now proceed to the discovery phase.
Bellavia Blatt-which represents over 750 dealerships in this lawsuit (up from just 124 when the suit was originally filed in May 2013)-alleges that CARFAX has illegal alliances with key players in the auto industry, which freezes out competition, thereby resulting in increased prices and unreliable vehicle history reports. Automobile dealers are forced to do business with CARFAX at grossly inflated prices, only to have CARFAX spend these inflated revenues on ads that disparage dealers as dishonest, when it is the automotive shopper who is being misled into believing CARFAX ads that claim its vehicle history reports contain accurate data.
"This recent decision is a substantial victory for the dealers as the Court held that we have asserted legally cognizable claims under the various antitrust laws," said Bellavia Blatt Senior Partner Leonard A. Bellavia. "This is an important initiative to redress wrongs being committed against both dealers and consumers."
Bellavia Blatt is seeking substantial money damages per dealership, along with an injunction against the alleged illegal conduct. Please call (516) 873-3000 or email CForgione@DealerLaw.com to obtain information about participation in this very important matter.
Bellavia Blatt & Crossett, P.C. was founded in 1987 and is a nationally recognized authority in the field of automotive franchise law. The firm represents thousands of automobile and marine dealerships across the country. With offices across the tri-state area, Bellavia Blatt is recognized as one of the foremost law firms in the nation for advocating the rights of franchised or licensed dealers.