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U.S. Judge Won’t Dismiss Dealer Claims Against Mahindra
A federal judge in Atlanta has denied the request of Mahindra and Mahindra Ltd. to dismiss a lawsuit brought by five U.S. car dealers who accuse the Mumbai-based truckmaker of fraud, misrepresentation and conspiracy.
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A federal judge in Atlanta has denied the request of Mahindra and Mahindra Ltd. to dismiss a lawsuit brought by five U.S. car dealers who accuse the Mumbai-based truckmaker of fraud, misrepresentation and conspiracy.
The dealers signed up with Alpharetta, Ga.-based distributor Global Vehicles USA to begin selling a compact diesel-powered Mahindra pickup truck in 2009. But the model launch was repeatedly delayed. The truckmaker ended its contract with Global Vehicles when it expired in mid-2010, and the truck never debuted in the U.S.
The plaintiffs allege Mahindra duped dealers into paying nearly $9 million in franchise fees and spending additional money on marketing and facilities. The company denies all the allegations.
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