California Dealers Join Suit Against Carfax
August 01, 2013
MINEOLA, N.Y. — Close to 380 more dealership owners throughout the country have joined the $50 million mass action, anti-trust lawsuit against CARFAX, which was originally filed in late April and now involves more than 500 car dealers. Leonard Bellavia, lead counsel on the lawsuit, noted that 29 of the plaintiffs are located in “The Golden State.”
The suit was brought forth by Bellavia, founding partner of the Mineola, N.Y.-based law firm Bellavia, Blatt, Andron & Crossett, PC. Dealers listed in the complaint argue that they have been overpaying for CARFAX’s vehicle history reports (VHRs) due to CARFAX blocking competitors by signing exclusive agreements with key industry players, thus preventing dealers from selecting a VHR provider of their choice and negotiating a fair price.
The plaintiffs claim that these exclusive deals result in grossly inflated pricing and unreliable vehicle history reports, which create conflicts between the car dealers and their customers.
“The number of car dealers from the state of California showing interest in this case exceeded my expectations,” said Bellavia. “Due to the ongoing concerns among hundreds of car dealerships regarding Carfax’s activities over the years, there has been little hesitation for dealership owners to join our suit.
“Dealerships and consumers have suffered because of Carfax’s tactics, which gouge dealers, and we assert that this legal action is a strong step towards putting an end to the provider’s unfair practices.”
Plaintiffs are also seeking to recover treble damages (three times the overcharges) for six years as well as legal fees.
For more information and to access documents which outline the claims and the costs of participation, click here.