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CARFAX Lawsuit Gains Steam

Mineola-based law firm Bellavia Blatt Andron & Crossett recently joined with Berger & Montague, P.C., in prosecuting the lawsuit Maxon Hyundai Mazda et-al. vs. Carfax, Inc., alleging violations of U.S. antitrust laws. Berger & Montague previously served as co-counsel against Visa and MasterCard, obtaining the landmark settlement of $7.25 billion, the largest private antitrust case settlement ever. 

 

Currently, there are approximately 500 dealer plaintiffs in the CARFAX lawsuit, a number that is expected to increase as the suit progresses, senior partner Leonard Bellavia says.

 

“Having Berger & Montague, one of the premier antitrust law firms in the country, join this lawsuit confirms the validity of our antitrust allegations against CARFAX,” he said. “We are pleased that a firm with this level of expertise in antitrust litigation will help to right the wrongs we allege that CARFAX has committed.”

 

The lawsuit alleges that CARFAX impairs competition through its exclusive and illegal alliances with Autotrader.com, and Cars.com, as well as with the majority of the automobile manufacturers’ certified pre-owned programs. The case further alleges that, as a result, automobile dealers are forced to conduct business with CARFAX at grossly inflated prices only to have CARFAX spend these inflated revenues on ads that disparage dealers as dishonest and untrustworthy.  

 

“Bellavia Blatt has long been a proponent of the rights of automobile dealers and this lawsuit on their behalf demonstrates that commitment,” said Eric L. Cramer, a managing shareholder at Berger & Montague. “Our firm looks forward to working with Bellavia Blatt on behalf of hundreds of dealers in promoting free and fair competition and to achieving a successful outcome for our clients.”